Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 63/2020 dated 25th August, 2020 to notify 1st day of the September, 2020 as the date on which the provisions of Section 100 of the Finance (No. 2) Act, 2019 through which a new proviso was inserted under sub-section (1) of Section 50 of the Central Goods and Services Tax (CGST) Act,2017 relating to the levy of interest on delayed filing of return on tax paid by debiting the electronic cash ledger shall come into force.
As per newly inserted proviso it has been provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date of filing Form GSTR-3B i.e summary return, then the interest shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger i.e. net tax liability that is to be paid in cash. Further, in case the return is furnished after commencement of any proceedings under Demand and Recovery in respect of the said period then this proviso shall not apply.
