CBIC notified Proviso to Section 50(1) – Interest in GST to be levied on Net Tax liability w.e.f September 1, 2020

CBIC vide Notification No. 63/2020 - Central Tax dated August 25, 2020, has notified proviso to section 50(1) of the CGST Act, 2017, with effect from September 01, 2020. 

 Therefore, Interest in GST to be levied on Net Tax liability, now notified w.e.f September 1, 2020 Interest in GST to be levied on "Net Tax liability", a proviso, which was inserted vide Section 100 of the Finance (No. 2) Act, 2019 (23 of 2019), now got notified w.e.f 01/09/2020 vide Notification No. 63/2020-Central Tax, dated. 25th August 2020. 

 Section100: In section 50 of the Central Goods and Services Tax Act, in sub-section (1), the following proviso shall be inserted, 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 the commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.”.