intimation of liability under section 50 of MGST Act 2017

[Guest]

Hi,

we have received notice under section 50 saying interest on late payment of tax liability, in above situation we have late filled our GSTR-3B, but we had regulery made payment through electronic cash ledger. now dept has send notice with huge tax liability ( late payment).

Kindly guide us if any solution - Pradeep 9004932485

[KASTURI SETHI]

Tax is set off /debited on the date of filing return. If return is late, tax transferred to Govt. account is also late. GSTR 3B return is self-assessed return. The whole responsibility is cast upon the tax payer.The department has issued such notice/ letters for recovery of interest under Section 79 of CGST Act. You cannot deny that tax has not been transferred into Govt. account late. Tax has been deposited late due to late filing of return. Tax is late so interest is payable. Under Section 79, the department can recover interest without SCN because of self assessment procedure.

Wait for the last date mentioned in the letter and if Govt. does not provide any relaxation for all the tax payers who have been issued such notices, you will have to deposit.

[vinod kumar]

Hi

we have received notice under section 50 saying interest on late payment of tax liability.

We would like to make a payment for the same. I have tried to DRC 03 mode but i did not find section 50 in that mode of payment.

please guide me how to pay the interest amount.

thanks

[Alkesh Jani]

Shri

Weekly update dated 15.02.2020 issued by CBIC and relevant portion is reproduced below

• The GST laws, as of now, permit interest calculation on delayed GST payment on the basis of gross tax liability. This position has been upheld in the Telangana High Court’s decision dated 18.04.2019 = 2019 (4) TMI 1319 - TELANGANA AND ANDHRA PRADESH HIGH COURT

• In spite of this position of law and Telangana High Court’s order, the Central Government and several State Governments, on the recommendations of GST Council in its 31st Meeting, amended their respective CGST/SGST Acts to charge interest on delayed GST payment on the basis of net tax liability. Such amendment will be made prospectively from a date yet to be notified.

Hope this will help in the matter.

Thanks

AI Summary

Interest on delayed GST payment: late GSTR-3B filing triggers interest and administrative recovery without separate show-cause notice. Interest under Section 50 arises when GSTR-3B is filed late because tax is set off on the filing date, making payment late and attracting interest; GSTR-3B is self-assessed and taxpayers bear responsibility. The department issues notices and may recover interest without a separate show-cause notice under recovery provisions. Interest is currently calculated on gross tax liability, though statutory amendments to charge interest on net liability have been agreed and will operate prospectively from a notified date.