ASMT-12 issues regarding

[Sudhir Kumar]

Can department issue ASMT-12 if the tax-payer pay the demanded tax amount but not paid the interest thereon. Please guide.

[KASTURI SETHI]

Rule 99 is very much clear. Interest has to be paid. Go through sub-clauses (1)(2)&(3) of Rule 99 of CGST Rules.

[Sudhir Kumar]

Thank you for your valuable suggestion. One more point to be discussed, whether the tax-payer give a letter to the department that he will pay the interest within a month, whether, it should be consider, any rules in this regard is in existence, please guide.

[KASTURI SETHI]

You can seek extension from the Officer on the basis of concrete and genuine grounds.

[Amit Agrawal]

Sub-rule (1) of rule 99 reads as follows:

"Where any return furnished by a registered person is selected for scrutiny, the proper officer shall scrutinize the same in accordance with the provisions of section 61 with reference to the information available with him, and in case of any discrepancy, he shall issue a notice to the said person in FORM GST ASMT-10, informing him of such discrepancy and seeking his explanation thereto within such time, not exceeding thirty days from the date of service of the notice or such further period as may be permitted by him and also, where possible, quantifying the amount of tax, interest and any other amount payable in relation to such discrepancy."

I concur with views of Shri Kasturi Sethi Ji.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Amit Agrawal]

Just to add:- Kindly note that no officergot any discretion under gst law/s to waive off or even reduce 'interest payable' as per gst act read with rules thereunder.

P.S. More than few assessee/s - I found - carry misunderstanding about this.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

AI Summary

Interest obligation under GST remains mandatory; officers cannot remit interest though limited payment extensions may be granted. Interest on delayed tax is a mandatory obligation and officers do not have statutory discretion to waive or reduce interest; the scrutiny process requires notices that quantify tax, interest and other amounts for discrepancies, and an officer may administratively grant a limited extension for payment on concrete and genuine grounds, which is not equivalent to remission of interest.