The Governor of Bihar has notified the date of which section 10 of Bihar Goods and Services Tax (Amendment) Act, 2019 comes into force. This notification was issued on 4th September 2020.
Section 10 of Bihar GST (Amendment) Act, 2019 covers the amendment to section 50 of the Goods and Services Tax Act, 2017. Section 50 of the Act of 2017 deals with interest payable on delayed payment of tax.
The Amendment Act of 2019 had, inter alia, amended section 50 by clarifying that interest on tax will be levied on the portion of the tax that is paid by debiting the electronic cash ledger. This applies to tax that was payable for supplies made during a particular tax period. Further such tax must have been declared in the Income Tax Return of that period and such return was furnished after the due date.
This provision has been declared to be in force from 1st September 2020.
However, the above-stated provision will not apply to returns that are furnished after the commencement of proceedings for the determination of tax not paid/ short paid/ erroneously refunded/ input tax credit wrongly availed or utilised for fraud or any wilful misstatement or suppression of facts (section 74 of the Bihar GST Act, 2017) or for any other reason (Section 73 of the Bihar GST Act, 2017).
