Interest Payable on GST Payable in Cash after setting of ITC notified effective from 1-9-2020

• CBIC notified effective date of amendment in section 50 of CGST Act, 2017 which stipulates that interest is payable on GST payable in cash after setting of Input Tax Credit as 1^st September, 2020 vide notification no. 63/2020 dated August 25, 2020
• This is in contravention of announcement made in press release of 39^th GST Council Meeting dated 14^th March, 2020 stating that the aforesaid provision shall be effective retrospectively from 1^st July, 2017 since the implementation of GST law 
• The recent notification created lots of controversy and may trigger demand notices by GST department for levy of interest pertaining to past period
• Immediate clarification is expected from CBIC for withdrawal of notification no. 63/2020. In the meantime in case recovery proceedings are initiated by GST department, a stand can be taken by highlighting inconsistency in announcement made by GST council and CBIC as above

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