commencement of proceedings

[Bibhu Tripathy]

Dear experts

Section 50 mentions interest on net tax libility will not be applicable when any commencement og proceedings under sec 73 and 74 started

my question

whether the investigation period will be the held as commencement of proceedings under sec 73 or 74. Whether the returns filed during this period will atttact intetest on gross liability or net tax liability*

AI Summary

Investigation Period Under GST Act Sections 73/74 Marks Proceedings Start; Interest Charged on Gross Tax Liability A query was raised regarding whether the investigation period under Sections 73 or 74 of the GST Act is considered the commencement of proceedings, affecting whether interest is charged on gross or net tax liability. One expert clarified that the term 'proceedings' is not defined in GST Acts or the General Clauses Act, but legal dictionaries suggest it includes steps in a judicial process. Thus, investigations are covered under these sections, and interest on gross liability applies if returns are filed after proceedings commence. Another expert confirmed that statutory interest is applicable on gross liability.