Amendment in interest provisions is retrospective
Amendment in interest provisions:
Section 50(1) of CGST Act is proposed to be amended. Finance bill 2019 has proposed a change. It contains the provisions related to interest in GST. After the Telangana High court case of Megha Enterprises bulk notices is issued. Huge demand from industry was there to change this provision. It levied interest on the full amount of payable tax without adjusting the ITC. This was a big question of whether the Amendment in interest provisions will be applicable from prospective date or retrospective. Where the provisions are applicable from a backdate it is called retrospective effect.
Whenever a provision is clarificatory in nature or is made as a remedy to a lacuna in the law, its impact should be retrospective. This is a settled principal.
You can read all the changes introduced by FB 2019.
We have posted a video on our channel which clears all doubts in this regard. Although this debate will calm down with time we need to take a stand. Thus this video is helpful for you. Where a notice is already issued it is quite helpful.
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