AI Drafter 
TaxTMI 
TaxTMI 
Intrest on Delay Payment to Supplier
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntrest on Delay Payment to Supplier<br> Query (Issue) Started By: - NILESH PITALE Dated:- 10-4-2026 Last Reply Date:- 20-4-2026 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>Dear Expert In One My Client Case, Department GST Audit has Done, After Audit They have Raised Audit Para in respect of Interest Payable As per Section 16 2(D) for Late Payment to Supplier After 180 Days, ---In Ou....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r Reply we submitted that that we are currently contesting this liability. Our stand is based on the ongoing legal deliberations regarding the constitutional validity of interest levies in such cases. Specially we are awaiting the final decision of the Hon'ble Gujarat High Court in the matter of Priya Blue Industries Pvt. Ltd Vs Union of India which deals with similar subject matter." Now t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hey Have Issue SCN Demanding Penalty U/s 122 and 74 which is Equivalent to tax along with interest. Our Question 1) Can We pay Interest Under Protest As per Audit Para 2) Can GST Department Issued SCN for Penalty 3) is there any chance to come out Decision in favour of Taxpayer in (Priya Blue Industries Pvt. Ltd) Please Guide Please Guide how to ta Reply By K....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ASTURI SETHI: The Reply: 1) Can We pay Interest Under Protest As per Audit Para ? YES. 2) Can GST Department Issued SCN for Penalty ? YES but would not sustain. 3) Is there any chance to come out Decision in favour of Taxpayer in (Priya Blue Industries Pvt. Ltd. ? YES. Chances are bright. (99 %). To be continued. Reply By KASTURI SETHI: The Reply: Since interest is integrally relat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed to tax/duty, so interest can also be paid under protest. To be continued. Reply By KASTURI SETHI: The Reply: Rule 233B of erstwhile Central Excise Rules, 1944 (dealing with payment of duty under protest) was saved by Section 38A of Central Excise Act and Section 38A stands saved by Section 174 of CGST Act, 2017. TO BE CONTINUED Reply By KASTURI SETHI: The Reply: In continuatio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n of my reply dated 14.4.2026 at serial no.1.2, Interest was paid under protest and the petitioner got the refund of interest. Go through the following case law :- 2025 (12) TMI 1372 - GUJARAT HIGH COURT Meghaaarika Enterprises Pvt. Ltd. Versus State of Gujarat Reply By KASTURI SETHI: The Reply: It is well settled law that filing of appeal is by itself a protes....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t.----------------CESTAT Reply By Shilpi Jain: The Reply: You can consider not paying the interest and contest the demand done there cannot be interest on interest. Reply By Shilpi Jain: The Reply: Any SCN issued for penalty can be contested<br> Discussion Forum - Knowledge Sharing ....