levi of interest

[giri gattupalli]

respected sir,

it is established principle and precedent of apex court is that , ' INTEREST IS COMPENSATORY IN NATURE '. and as of now this position is still continued .and then how govt can levi interest for non discloser or short disclosure of out put tax liability if there is continuous excess of input tax credit in electronic credit ledger and where there is no loss to govt which is consequent of short disclosure of out put tax liability and where there is no requirement to pay tax in cash .please discuss it in the light of amended rule 50 .

thanking you

AI Summary

Debate on GST Interest Charges for Excess Input Tax Credit: Section 50 of CGST Act Explored A participant raised a query regarding the imposition of interest under the Goods and Services Tax (GST) when there is no revenue loss to the government due to excess input tax credit. They questioned the legitimacy of charging interest for non-disclosure or short disclosure of output tax liability. Respondents clarified that the relevant provision is Section 50 of the CGST Act. One respondent suggested reviewing a Supreme Court ruling but advised caution as different laws apply. Another mentioned that interest is payable unless the constitutional validity of the provision is challenged. A reference to a Madras High Court decision was also provided for further insight.