Question 4 - Where the tax liability as per the final assessment is higher than in provisional assessment, will the taxable person be liable to pay interest?
Faq On GST (2nd Edition) Dated 31.3.2017 Chapter 13 Assessment and Audit
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Interest on additional tax arises when final assessment increases liability, payable from original due date until payment. Interest liability arises where tax in a final assessment exceeds provisional assessment; interest is payable from the date the tax was originally due until actual payment of the higher tax.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Interest on additional tax arises when final assessment increases liability, payable from original due date until payment.
Interest liability arises where tax in a final assessment exceeds provisional assessment; interest is payable from the date the tax was originally due until actual payment of the higher tax.
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