The journey of Section 50 so far
Section 50 of GST Act – Interest on delayed payment of tax
| Impact of changes made in Section 50 | Interest on gross tax liability | Interest on net tax liability |
Section 50 was notified w.e.f 01.07.2017 | 1st July 2017 onwards | N.A. |
In-principle approval for amendment in the 31st GST Council meeting | 1st July 2017 onwards | N.A. |
Amendment proposed in Finance Bill (No. 2) 2019 | 1st July 2017 onwards | N.A. |
Amendment to Sec 50 proposed in Finance Bill (No. 2) 2019 | 1st July 2017 to 31st Aug 2020 | 1st Sep 2020 onwards |
| Clarification issued by Government on Twitter. (Refer Press Release dated 26.08.2020) | 1st July 2017 to 31st Aug 2020 | 1st Sep 2020 onwards |
Amendment to Sec 50 proposed in Finance Bill (No. 1) 2021 | 1st July 2017 to 31st Aug 2020 | 1st Sep 2020 onwards |
| If it will be notified without making any changes in the proposed in Finance Bill (No. 1) 2021. | N.A. | 1st July 2017 onwards |
If Press Releases issued by Government were enough, then an amendment to Section 50 would have not been made in the Finance Bill (No. 1) 2021.
Note: Any changes announced by the Government in respect of GST law or GST Rules in the press briefings, press releases or Finance Bill will not have any material validity in the court of law unless the same is notified by the Ministry of Finance.
Thought to ponder…
Is there any scope of refund of the interest that has been collected on gross tax liability?
If yes, Government should guide the taxpayers on how to apply for the refund of the same.
Will the interest be refunded with interest? Then at what rate?
What happens with the taxpayers who have already canceled their registration and had paid interest on gross tax liability?
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