Circular issued by the Ministry of Finance, Department of Revenue, CBIC, GOI.
Dear all,
Your association SIMA is forwarding herewith the Circular, dated 18th September 2020 issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing, Government of India regarding Administrative instructions for recovery of interest on net cash tax liability w.e.f. 01.07.2017.
Vide the Circular, it is directed that based on the recommendations of the 35" meeting of the GST Council held on 21" June 2019, the provision of section 50 was amended vide section 100 of the Finance (No. 2) Act, 2019 to provide for charging interest on the net cash tax liability. The said amendment was to be made effective from a date to be notified by the Government. Accordingly, the said provision was made effective vide notification No. 63/2020 Central Tax dated the 25th August 2020, w.e.f. 01.09.2020. The copy of the said Notification is enclosed herewith.
2. The GST Council, in its 39th meeting, held on 14th March 2020 recommended interest to be charged on the net cash tax liability w.e.f. 01.07.2017.
This is for your kind information.
TO VIEW THE NOTIFICATION NO.63/2020, PLEASE CLICK HERE.
TO VIEW THE CIRCULAR PLEASE CLICK HERE.
Thanking You,
With regards,
For Silvassa Industries & Manufacturers Association
Narendra Trivedi
Secretary
