Sir
One dealer is having sufficient balance in his electronic credit ledger to pay his GST for the month of March 2020. His last year turn over was more than Rs 5 cr. He is going to file his GSTR 3B on 20.05.20. I think he will not have any interest liability for the tax since there is no cash payment. The GST officer inform him that he should pay interest since the return is not filed before 05.05.2020. please clarify.
The 39th GST Council meeting held on Saturday, March 14, 2020 has already decided that the proviso to Section 50(1) of the CGST Act 2017 concerning interest for delay in payment of GST on net liability, inserted vide Finance Act, 2019, needs to be given retrospective effect from July 1, 2017.
Thus it is a matter of time that the applicability of proviso is notified and thus no interest in your case needs to be paid. Although it is quite amusing why delay is being made by Govt. in notifying.
Team Clearmytax.in