SEC 50 ; CONSTITUTIONAL VALIDITY

[giri gattupalli]

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

AI Summary

Interest on delayed GST payments: interest payable despite using input credit when assessment or evasion proceedings commence.
The proviso to the GST interest provision limits interest on belated returns to tax paid from the electronic cash ledger, but where a return is filed after commencement of assessment or evasion proceedings the exclusion does not apply. Thus, when tax shortfalls are detected during adjudication, interest is chargeable on the tax evaded even if the taxpayer discharges the liability using the Electronic Credit Ledger; the compensatory-interest principle from prior case law does not negate interest where the principal tax was due and paid late.