GST : Interest on net liability
The government has notified dated 25th August 2020 that interest on delayed goods and services tax (GST) will be payable on net basis with effect from 1st September 2020.
This, however, is against the decision by the GST Council in the March meeting, where it had decided to levy interest on net basis and not gross with a retrospective effect from July 1, 2017.
This is clarified today (26th August, 2020) by issue of Press Release that ‘no recoveries shall be made for the past period as well by the Central and State tax administration in accordance with the decision taken in 39th GST Council meeting.
Please find attached Notification and Press Release for your reference
Interest on Net liability – Notification
Interest on Net Tax Liability _ Press Release