Page 39 - GSTL_3rd September 2020_Vol 40_Part 1

2020 ] NEWS DESK J21
However, C.B.I. & C. assured that the same rule will apply for past pay-
ments as well and no recoveries will be made on the notices sent to various busi-
ness for interest on gross payments.
This will ensure full relief to the taxpayers as decided by the Council, it
said.
Earlier in the day, experts were left baffled by the notification, wonder-
ing why the Council’s decision has not yet been implemented. They had said it
will lead to litigation for large taxpayers and harassment for small and medium
enterprises.
Rajat Mohan, Partner at AMRG Associates, had said : “The GST Council
had decided that the interest due on delayed GST payment would be charged on
the net cash tax liability with effect from July 1, 2017. However the notification
acceded this benefit prospectively from September 1, 2020. This issue is, once
again, expected to land up in a judicial forum, thus adding to litigation woes for
large taxpayers, and harassment for MSMEs.” Abhishek Jain, Partner at EY, had
said that with the GST Council having approved of a retrospective amendment
to interest dues being applicable on net liability, businesses will now await retro-
spective prescription for this.
“The retrospective notification becomes all the more imperative to sub-
side multiple notices, which were issued by Revenue Authorities demanding
GST on gross liability,” he said.
Bimal Jain, an independent Chartered Accountant, had tweeted : “Why
have recommendations and words of the GST Council not been respected and
followed?”
There were also adverse comments on notification on the social media.
C.B.I. & C. said its explanation came in response to an assortment of
comments on the social media. The GST Council had to intervene earlier as the
Government had issued recovery notices to several businesses, demanding inter-
est on gross liability.
Finance Minister Nirmala Sitharaman had, after the GST Council meet-
ing in March, said : “The Council also decided to levy interest on delayed pay-
ment of GST on a net basis, not gross. For this, GST laws will be amended with
retrospective effect of July 1, 2017.”
The move was aimed at reducing disputes and easing the recovery pro-
cess, besides easing immediate cash flow burden on most entities.
Businesses registered under GST (other than under the composition
scheme) are required to file GSTR-1 for outward supplies for a month by the 11th
day of the following month, and GSTR-3B - a summary return for sales and Input
Tax Credit (ITC) - by the 20th.
[Source : Business Standard, New Delhi, dated 27-8-2020]

Personal hearing via video conferencing now mandatory
for GST-related appeals
The Central Board of Indirect Taxes & Customs (C.B.I. & C.) has decided
to make personal hearing through video conferencing mandatory in GST-related
appeals along with Custom and Excise duty related ones.

GST LAW TIMES  3rd September 2020  55