respected sir,
as a settled rule by supreme court' INTEREST IS COMPESATORY IN NATURE' and till now this position continues , and as per GST LAW delayed payment made by crediting electronic credit ledger , and as there is no loss of money to exchequer , how SEC 50 OF GST ACT come in to play. please share your opinions. whether any one challenged this issue ? if yes please share inputs. our eminent panel discussions are very educative to me.
thanking you
giri
tax advocate
Debate on Section 50 GST Act: Interest on Delayed Tax Payments Valid Despite Credit Ledger Balance, Likely Constitutional. A discussion on the constitutional validity of Section 50 of the GST Act revolves around the compensatory nature of interest on delayed tax payments. A tax advocate questions the applicability of interest when tax dues are settled using the electronic credit ledger, arguing no financial loss to the exchequer. Respondents clarify that interest is levied on unpaid taxes due by the deadline, and the GST law mandates interest on cash payments post-proceedings under Sections 73 or 74. The consensus is that interest applies despite sufficient credit ledger balance, and challenging this on constitutional grounds is unlikely to succeed. (AI Summary)
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