Now the interest on the tax, including the input credit on the payment delay, will be repaid. The Telangana High Court has rejected the appeal challenging the interest demand on Overall Goods and Services Tax (GST), including input tax credits. The high court's ruling can have a huge impact on the entire industry.
This judgment of the High Court means that if the tax payment is delayed by the assessee, the officer can demand interest on the outstanding tax liability. On December 22, the GST Council suggested that interest tax on Net liability from tax payers was sought. There was talk of amendment in the law for this. council said that interest should be levied on the delayed payment of the outstanding income tax credit by the reduction of the Gross Tax Liability, but the Telangana High Court has rejected this suggestion of the GST Council, as the law has not been revised so far.
The High Court has said that the demand for interest on the part of tax on input tax credit (ITC) was challenged, which is not appropriate. So this petition is rejected. Tax experts say that this verdict is against the established procedure and the government's purpose. National Leader of indirect tax in PwC, Pratik Jain, said that this ruling does not match the government's consideration. Contrary to the traditions of the industry. On the other hand, the suggestion of GST Council on ITC will be implemented only after the amendment in the State and Central GST Act.
This judgment of the High Court means that if the tax payment is delayed by the assessee, the officer can demand interest on the outstanding tax liability. On December 22, the GST Council suggested that interest tax on Net liability from tax payers was sought. There was talk of amendment in the law for this. council said that interest should be levied on the delayed payment of the outstanding income tax credit by the reduction of the Gross Tax Liability, but the Telangana High Court has rejected this suggestion of the GST Council, as the law has not been revised so far.
The High Court has said that the demand for interest on the part of tax on input tax credit (ITC) was challenged, which is not appropriate. So this petition is rejected. Tax experts say that this verdict is against the established procedure and the government's purpose. National Leader of indirect tax in PwC, Pratik Jain, said that this ruling does not match the government's consideration. Contrary to the traditions of the industry. On the other hand, the suggestion of GST Council on ITC will be implemented only after the amendment in the State and Central GST Act.
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