Whether interest liability as per Section 50 of CGST Act.

[samiuddin ansari]

The CGST Range officer, while scrutiny of the GSTR-B returns for the period July-17 to Dec-2018 have observed and stated that my friend's firm has not discharged the interest liability on gross output liability, but paid on net output liability for the period from July, 2017 to Sept., 2017 i.e. for three months. We solicit your expert comment on such query as payment of interest liability is correct or otherwise with notification, clarification or council clarification supported with rulings thereon, if any. Since no such explanation has been provided as to the manner of discharge the liability of interest on outstanding output liability.

AI Summary

Debate on Charging Interest: Gross vs. Net Output Tax Liability Under Section 50 of CGST Act Sparks Discussion A discussion on the interest liability under Section 50 of the CGST Act focused on whether interest should be charged on gross or net output tax liability when input tax credit is available. The issue arose from a firm's failure to discharge interest on gross output liability for a specific period. Participants debated the interpretation of relevant sections and rules, highlighting arguments for both gross and net liability calculations. They referenced past tax regimes and judicial interpretations, emphasizing the need for clarity and fairness in the law. A notification from the government was anticipated to address the issue.