State the consequences of the following violations/defaults under the provisions of GST Laws: A fails to pay GST of Rupees 50,000 to the Government on the due date prescribed.
CS Professional · Advanced Tax Laws · PYQS · June 2021
State the consequences of the following violations/defaults under the provisions of GST Laws: A fails to pay GST of Rupees 50,000 to the Government on the due date prescribed.
Answer & Explanation:
As per Section 50(1) of Central Goods and Services Tax Act, 2017 every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at the rate of 18%. Accordingly in the given situation, A would have to pay interest on ₹ 50,000 @ 18% for the period during which the Goods and Services Tax of ₹ 50,000 remain unpaid.
Topics: GST - Penalties
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