Delayed GST payments to face Rs 46,000 cr interest
New Delhi: Tax authorities have estimated interest in delayed GST payments of around Rs 46,000 crores from GST taxpayers. So then, this amount stood as a penalty for delayed payment, opening a fresh front against late and non-filers.
Besides, the Central Board of Indirect Taxes and Customs (CBIC) has directed top officials across the country. This might initiate recovery proceedings against those who have not cleared their interest liability. While the systems wing has done a detailed analysis of each GST Identification Number. So then, this says that the deadline for payment stays 20th every month. Apart from a late payment fee of Rs 100 a day for central GST and a matching amount for state GST, the law also provides a levy of 18% penal interest. Also, CBIC has cleared that the interest has to remain imposed on the entire tax liability and not on the cash payment alone.
Despite this, in GST taxpayers can pay a part of the liability in cash. Also, use the tax credits to settle their dues. Besides, tax officers said large taxpayers calculated the liability and paid, but the smaller ones did not pay. The instructions come amid a shortfall in GST collections.
Also, the issue had come up at the time of service tax and several notices faced challenges in court.