Interest Calculation u/s 50 of CGST Act

[PANKAJ KUMAR]

Hi..

We had liability for the month of July 2018 ₹ 50 Lakh and CENVAT of ₹ 45 Lakh, net liability comes to ₹ 5 lakh. my query is on which amount we have to pay interest u/s 50 of CGST act.

We have to pay interest on ₹ 50 Lakh as liability still not set off at the portal?

AI Summary

GST Forum Discusses Interest Calculation Under Section 50 CGST Act; Debate on Charging Interest on Gross vs. Net Liability A discussion on the Goods and Services Tax (GST) forum addressed the calculation of interest under Section 50 of the CGST Act concerning a liability of 50 lakh for July 2018, with a CENVAT credit of 45 lakh, resulting in a net liability of 5 lakh. The consensus among participants was that interest should be paid on the full 50 lakh, as the liability was not set off at the portal. However, there was mention of a possible future amendment to charge interest only on the net liability. The GST council had recommended considering available ITC for delayed payments, but the notification was pending.