iterest liability

[AMIT BATHAM]

One of my clients is a government contractor who completed road construction work for the central government in 2018-2019. The central government paid the basic amount but not GST because officials told the applicant that no budget was allotted for GST. The applicant paid GST in 2022-2023 from yourself and then approached the high court. After the high court order, the department paid the GST amount. The question now is whether the applicant is liable for interest or not because the PWD did not paid GST to the applicant

AI Summary

Interest liability on delayed GST deposits may arise despite recipient non-payment; challenge via due-date and notification arguments.
The central operative issue is whether interest liability for delayed GST deposits rests on the supplier despite the government recipient's delayed payment. While administrative and judicial views predominantly treat interest as triggered by delayed deposit irrespective of recipient non-payment, a defense asserts that payment due-dates are tied to return-filing deadlines and that notified filing extensions for the period may negate any delay-based interest. Practical remedies include recovery of interest from the government recipient, seeking order rectification or further litigation, and using credit ledger balances to avoid interest to that extent.