Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 16/2021- Central Tax dated 1st June, 2021 to notify 1st day of June, 2021 as the date when the provisions of Section 112 of the Finance Act, 2021 shall come into force.
As per Section 112 of the Finance Act, 2021, Section 50 of the Central Goods and Service Tax(CGST) Act, 2017 relating to “Interest on delayed payment of tax” has been amended retrospectively from July 01, 2017 to provide for interest on net cash payable in case of delayed filing of returns. The said benefit shall not be available in cases where the return is furnished after commencement of any proceedings under Section 73 or Section 74 of the CGST Act, 2017 and in case of non-reporting transactions and the interest is to be payable on that portion of the tax which is paid by debiting the electronic cash ledger.
Source: Central Board of Indirect Taxes & Customs
