Suggestions on GST Implementation Issues 28.09.2017 by ICAI
51. No interest recovery on the credit reversal on date of completion of building
Section 50 of the CGST Act provides that every person who is liable to pay tax in accordance with the provisions of this Act or the rules made there under, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding 18%, as may be notified by the Government on the recommendations of the Council.
There may be bona fide cases where the CENVAT credit was rightly availed at the time of
availment but some external event (like grant of Original Certificate for building) can result
in GST not being applicable. In such cases, demanding the interest recovery on the GST
amount would be inequitable.
It is suggested to insert a proviso in the section as under: –
“Provided that no interest would be payable in case of reversal of credit due to grant of
permission or certificate in respect of building referred in Schedule II para 5(b)“.
Related Topic on GST
|GST Acts||Central GST Act and States GST Acts|
|GST Rules||GST Rules|
|GST Forms||GST Forms|
|GST Rates||GST Rates|
|GST Notifications||GST Act Notifications|
|GST Circulars||GST Circulars|
|GST Judgments||GST Judgments|
|GST Press Release||GST Press Release|
|GST Books||Best Books on GST in India|
|GST Commentary||Topic wise Commentary on GST Act of India|
|GST You Tube Channel||TaxHeal You Tube Channel|
|GST Online Course||Join GST online Course|
|GST History||GST History and Background Material|