Section 50 of CGST act

[Kavali Ramanjeneyulu]

Notfn no 63/2020 notified the 1st September 2020 on which the proviso relating to charging of interest on net cash liability in case of delayed payment. Is it required to amend sec 50 again or can it be done by way of notification. PL clarify.

[KASTURI SETHI]

In my view, a separate notification for retrospective amendment may be issued. Timing may be after the next meeting of GST Council to be held on 27.8.2020.

[YAGAY andSUN]

Generally Act is amended by Parliament. The procedure is laid out in Article 368. An amendment bill must be passed by each House of the Parliament by a majority of the total membership of that House when at least two-thirds members are present and voted. However if Parliament session is not in force then certain amendments can be conducted through issuance of Notification.

[Mr Rao]

Dear sirs,

CBIC has issued press release on 26.08.2020 clarifying that Notification 63/2020-CT Dt. 25.08.2020 relating to interest on delayed payment of GST has been issued prospectively due to certain technical limitations. However, it has assured that no recoveries shall be made for the past period in accordance with the decision taken in the 39th Meeting of GST council. This will ensure full relief to the taxpayers as decided by the GST Council.

[KASTURI SETHI]

With the Press Release dated 26.8.2020, it appears that now Govt. has made up its mind to give benefit to tax payers retrospectively.

AI Summary

Interest on delayed GST payment: notification and CBIC assurance indicate administrative route to retrospective taxpayer relief. Section 50 CGST addresses interest on delayed GST payment and whether the proviso in Notification 63/2020 can be applied retrospectively or requires parliamentary amendment; administrative responses state the notification was issued prospectively for technical reasons but that no past recoveries will be made in accordance with the GST Council, indicating potential retrospective relief to taxpayers via executive action and CBIC assurance.