Date - 1st of August 2019
The proviso to section 50 subsection 1 “Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after the commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.”. (Finance (No. 2) Act, 2019)
Date - 25th of August 2020
➡Government has notified proviso to section 50 subsection 1 vide notification no. 63/2020 dated 25th of August 2020 that interest will be applicable on NET AMOUNT with effect from 1st of September 2020.
Date - 26th August 2020
➡Government has now issued a clarification in the press release dated 26th of August 2020 that the provisions shall apply prospectively w.e.f 1st of September 2020.
➡Also, CBIC clarified that the proviso to section 50 subsection 1 has been notified prospectively due to certain technical limitations.
➡Further, also it has been assured that no recoveries shall be made for the past period as well by the central and state tax administration in accordance with the decision taken in 39th GST Council Meeting.
Further to above all, there is a clear disconnect between what the Finance Ministry wants/proposes and finally what CBIC notifies. The department should remove ambiguities instead of adding woes to assessees.
Yorumlar