Section 49 of CGST Act 2017: Payment of Tax, Interest, Penalty and Other Amounts

  • Blog|GST & Customs|
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  • Last Updated on 28 June, 2021

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As per Section 49 of the CGST Act 2017, below are the various provisions for payment of tax, interests, penalty, and any other amounts:
 
• Every deposit by the taxable person towards payment of tax, interest, penalty, or any kind of fee must be done either through internet banking or using a credit or debit card or through NEFT or RTGS with subject to restrictions and conditions as imposed by GST Act and should be credited to electronic ledger of Government in prescribed manner.
 
• The self-assessed input tax credits of a  person shall be credited to his registered electronic credit ledger as prescribed in section 41 of the GST Act and must be maintained as per the prescribed law.
 
• The total amount available in electronic cash ledger could be used for making any payments towards the tax, interest, penalty, fees, or any other amount which is payable under the provisions of GST Act or the rules as prescribed under this act subject to condition and time limits as may be prescribed.
 
• The amount available in electronic ledger maybe used for making payments towards the output tax under the GST Act or IGST act as in the manner prescribed to such conditions and in the time limits prescribed by the law.
 
• The amount of input tax credit available in the electronic credit ledger of the registered person on account of:
       i) Integrated tax shall be first utilized towards the payment of integrated tax and remaining amount may be utilized for payment of central tax and State tax or Union territory tax, if any.
 
       ii) The central tax shall be first utilized towards the payment of central tax and remaining amount may be utilized to pay taxes towards the integrated taxes.
 
       iii) The State tax shall be first utilized towards the payment of State tax and remaining amount may be utilized to pay taxes towards the integrated taxes.
 
       iv) The Union Territory taxes shall be first utilized towards the payment of union territory taxes and remaining amount may be used to pay toward integrated taxes.
 
       v) The State tax or union territory tax shall not be utilized towards the payment of central tax or vice-versa.
 
       vi) Any balance in the electronic cash ledger or electronic credit ledger after the payment of all taxes, penalty, fee, or any other payable amount may be refunded to the taxpayer as per provisions under section 54 of GST Act.
• Under this act, all the liabilities and payments of a person or entity shall be recorded as prescribed by the law.
 
• Each taxable person shall then discharge his taxes or any other dues under this act or under any of the rules in below mentioned order:
 
     i) self-assessed tax and other dues related to the returns of previous tax periods
 
     ii) self-assessed tax and any other dues related to current tax period
 
     iii) any other amounts  payable under this Act or the rule made under this act which may include the demand as determined under section 73 or section 74 of the GST Law.

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