Applicability of Amended Rule 88B

[POOJA AGARWAL]

Dear Experts

Rule 88B has been amended to provide that no interest shall be payable on the amount available in Electronic Cash Ledger, merely for delay in filing GSTR-3B. However, the department in our case is insisting that the same shall be effective w.e.f. 10.07.2024; and demanding interest for the period 2017-18 to 2021-22.

Please suggest

AI Summary

Interest exemption for electronic cash ledger deposits prevents interest on late GST returns when tax was deposited earlier.
Dispute concerns whether the amendment to Rule 88B-which exempts amounts in the Electronic Cash Ledger from interest merely for delayed return filing-applies retrospectively from 1 July 2017 or only from the rule's publication date in July 2024. Resolution requires reconciling the Finance Act substitution to the proviso of Section 50 (deemed effective 1 July 2017), notifications appointing commencement dates for related provisions, GST Council recommendations to relieve interest where ledger funds existed, and judicial findings treating ledger deposits as government receipts.