Find
Interest under Sec 50 is compensatory and follows the tax. If the tax is payable, interest is generally payable too. You can, however, challenge its computation.
GST
Interest in a show cause notice demand
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Sec 50(1), CGST Act 2017; Sec 50(3), CGST Act 2017; Sec 73(1), CGST Act 2017
Analysis
Check whether the officer charged interest on the gross amount when only the cash portion was due, or on unutilised ITC. Check the start and end dates used. Errors in the computation are common. Dispute the tax on merits and the interest on computation.
Close
- Recompute interest using correct dates and base.
- Check the cash-only rule and utilisation rules.
- Point out computation errors in the reply.
- Pay the correct amount if you accept the tax.
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