CBIC direct officers to recover the unpaid Interest on delayed payment of taxes u/s 50(1) of CGST Act

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The CBIC issued notice vide F. No. CBEC-20/16/07/2020-GST dated February 10, 2020, for recovery of interest payable on delayed payment of tax by the taxpayers in Form GSTR – 3B return belatedly under section 50(1) of CGST Act, 2017.

Further, the Principal Additional Director General (Systems), on February 01, 2020, has generated a report and shared the GSTIN wise list of the registered person, who has not discharged the due interest while filing their Form GSTR – 3B belatedly, which amounts to Rs. 45,996/- crore, remains unpaid to the government on account of a delayed payment of tax.

Therefore, according to the report, the officers are asked to initiate the process of recovery of such unpaid interest as per the provisions of section 79 read with section 75(12) of the CGST Act, 2017. However, it was further clarified that the interest liability is required to be paid on the tax liability that is paid belatedly either in cash or through Input Tax Credit (ITC) utilization.

The Notice can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2020/02/Interest-GSTR-3B-Tax-Liability.pdf