Interest under 50(1)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nterest under 50(1)<br> Query (Issue) Started By: - Vasudev Mehta Dated:- 15-12-2022 Last Reply Date:- 20-12-2022 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>The assesse had output tax through credit ledger in 2017-18 on 03.01.2020 through DRC 03 during audit. The assesse had enough balance in the electronic credit ledger till that time. Whether interest under section 50(1) is applicab....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....le on the above transaction where there was enough balance in ecl? Reply By Amit Agrawal: The Reply: Where ITC is wrongly availed but not utilized, one can take benefit of Section 50 (3) of the CGST Act, 2017 read with rule 88B (3) of the CGST Act, 2017. But, this benefit is not available where any output tax liability was not disclosed & paid while filing return for the month when such output ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....liability arises. In other words, subsequent payment of output taxes upon Dept&#39;s audit objection, interest is payable u/s 50 (1) of the CGST Act, 2017 read with rule 88B (3) of the CGST Act, 2017 even when tax-payer is having constant ITC balance in his ledger for in-between period. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Rep....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ly By KASTURI SETHI: The Reply: If the department directs to pay GST under Section 74 of CGST Act, interest will be payable. Reply By Amit Agrawal: The Reply: In my humble view, liability to pay interest u/s 50 (1) will be there even if Dept. issues SCN u/s 73. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By KASTURI SETHI: Th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Reply: Sh.Amit Agrawal Ji, Sir, I agree with your reply at serial no.3 above and accordingly, I amend my reply at serial no.2.<br> Discussion Forum - Knowledge Sharing ....