The Central Board of Indirect Taxes & Customs (CBIC) has asked GST officials to collect interest of nearly Rs. 46,000 crore on account of delayed payment of the Goods & Services Tax (GST).
The Principal Additional Director General, in the Tax Department generated and shared the GSTIN-wise list of the assessees, who have not discharged the due interest liability on delayed filing of GSTR 3B returns. According to the letter, the total interest amount due was ₹45,996 crore. Now, process has been initiated to recover this interest.
Futher, it was cleared that interest has to be paid on the total tax liability as shown in GSTR 3B, which means interest liability has to be paid on the tax liability that is paid belatedly, either through cash or utilisation of input tax credit (ITC).
Tax experts disputed the number saying government had promised to hand-hold the taxpayers at the time of migration to the new indirect tax regime by waiving off interest and penalties for filing their tax returns. Further, it has now resorted to extremely harsh measures to boost its tax collection. Moreover, the levying of interest would trigger huge litigations with taxpayers challenging the demand.