Amendment to Section 50 of the Central Goods and Services Tax Act
Section 50 of the Central Goods and Services Tax Act has been amended to update the proviso related to interest on tax payable. This amendment is retroactively effective from July 1, 2017. According to the new proviso, interest on tax payable for supplies made during a tax period, and declared in a return submitted after the due date, will only apply to the portion of tax paid using the electronic cash ledger. This rule applies unless the return is filed after proceedings have started under sections 73 or 74 for that period. Essentially, this change means that taxpayers will not incur interest on the entire tax amount if they file late, but only on the portion paid with cash, unless there's an ongoing investigation or audit under the specified sections.
Note: It is an AI generated summary for reference purpose only.
Amendment of section 50.
112. In section 50 of the Central Goods and Services Tax Act, in sub-section (1), for the proviso, the following proviso shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2017, namely:––
“Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be payable on that portion of the tax which is paid by debiting the electronic cash ledger.”.
