Interest Will Not Be Charged On Amount Available In Electronic Cash Ledger Till Due Date: 53rd GST Council Meeting

The 53rd GST Council meeting happened on June 22, 2024, in New Delhi, nearly eight months after the last one. The Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, chaired the 53rd GST Council.

The council has recommended the amendment of Rule 88B of CGST Rules, 2017 in respect of interest under Section 50 of CGST Act on delayed filing of returns, in cases where the credit is available in Electronic Cash Ledger (ECL) on the due date of filing the return.

The GST Council recommended amendment in rule 88B of CGST Rules to provide that an amount, which is available in the Electronic Cash Ledger on the due date of filing of return in FORM GSTR-3B, and is debited while filing the return, shall not be included while calculating interest under section 50 of the CGST Act in respect of delayed filing of the said return.

At present Rule 88B of CGST Rules, 2017 states that in case of a delayed payment of tax, interest on tax payable will be calculated only on that portion of the tax which is paid via debiting the electronic cash ledger. Such interest will be calculated from the due date of filing of return till the return is filed.