Dear Experts,
Please guide if there is any limitation period for recovery of interest amount under section 79 as well. In our case the department proposes to recover the interest for FY 2017-18 u/s 79 of the act vide notice (DRC 01D) dt. 01.07.2025
We do not agree to the interest demand, as the amount was available in Electronic Cash Ledger and only the return was filed after the due date (with late fee); there are various legal precedents in our support and the law has been amended as well, however neither the department is accepting our submissions nor the department not issuing SCN DRC 01A or DRC 01 (despite specific request), and has issued present DRC-01D.
Please guide
Recovery notice DRC-01D allows collection of automatic statutory GST interest despite limitation on Sections 73/74 demands; disputes need adjudication A taxpayer contests an interest recovery notice issued under the recovery procedure (DRC-01D) for a delayed return where tax was available in the electronic cash ledger; the forum responses state that interest on self-assessed tax is automatic under the GST scheme and payable under the statute and rules, that DRC-01D issued under the recovery rule is a valid mechanism and may proceed to recovery after the statutory period, and that limitation bars raising certain demands (Sections 73/74) but does not apply to recovery of arrears under the recovery provision; disputed interest amounts require adjudication or judicial remedy. (AI Summary)
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