Interest under 50(1)

[Vasudev Mehta]

The assesse had output tax through credit ledger in 2017-18 on 03.01.2020 through DRC 03 during audit. The assesse had enough balance in the electronic credit ledger till that time. Whether interest under section 50(1) is applicable on the above transaction where there was enough balance in ecl?

AI Summary

Interest Applicable on Undisclosed Output Tax Under Section 50(1) of CGST Act, Even with Credit Ledger Balance A discussion on the applicability of interest under Section 50(1) of the CGST Act, 2017, was initiated regarding a taxpayer's output tax through the credit ledger in 2017-18, settled in 2020 following an audit. The consensus among participants was that interest is applicable under Section 50(1) if the output tax liability was not disclosed and paid when due, despite having a sufficient balance in the electronic credit ledger. It was noted that this view should not be taken as professional advice. Participants also discussed implications under Sections 73 and 74 of the CGST Act.