CBIC vide Press Release dated 26.08.2020 has clarified that the Notification No. 63/2020-Central Tax dated 25th August, 2020 relating to interest on delayed payment of GST has been issued prospectively due to certain technical limitations. However, it has assured that no recoveries shall be made for past period as well by the Central and State Tax Administration in accordance with the decision taken in the 39th Meeting of GST Council. This will ensure full relief to the tax payers as decided by the GST Council.
CBIC explanation came in response to an assortment of comments in the social media with respect to Notification dated 25th August,2020 regarding charging of interest on delayed payment of GST on net liability (the tax liability discharged in cash) w.e.f. 1st September,2020.
The above explanation / clarification of CBIC is in line with that discussed today morning in our article titled “Interest on net GST liability: Analysis of why relief is granted prospectively, in backdrop of events so far”
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