CBIC allows transfer of amount in electronic cash ledger of a registered person to that of a distinct person w.e.f 5th day of July, 2022 under GST
Central Board of Indirect Taxes & Customs (CBIC) has issued Notification No. 9/2022 – Central Tax to notify 5th day of July, 2022 as the date on which the provisions of clause (c) of Section 110 relating to Section 49 (10) of Central Goods and Services Tax (CGST) Act, 2017 pertaining to “Payment of tax, interest, penalty and other amounts” and Section 111 of the Finance Act, 2022 relating to Section 50 (3) of CGST Act, 2017 pertaining to “Interest on delayed payment of tax” shall come into force.
As per Section 110 (c) of Finance Act, 2022, Section 49 (10) CGST Act, 2017, has been substituted to allow transfer of amount available in electronic cash ledger of a registered person to the electronic cash ledger of a distinct person and such transfer shall be deemed to be a refund from the electronic cash ledger under this Act. It has been further provided that no such transfer shall be allowed if the said registered person has any unpaid liability in his electronic liability register.
As per Section 111 of Finance Act, 2022, Section 50 (3) CGST Act, 2017, has been substituted retrospectively from 1st day of July, 2017 to provide that interest will be payable by the registered person on such input tax credit wrongly availed and utilized at prescribed rate.
