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

Interest under Section 50: payable on gross tax liability absent ITC credit, with amendment recommendation pending.
Interest under Section 50 is generally computed on the full tax liability when the liability remains unpaid in the electronic cash account because ITC merely available in the electronic credit ledger is not treated as payment to Government; a policy recommendation to consider available ITC for interest computation exists but requires prospective notification or amendment.