CBIC has vide notification no. 16/2021 – CGST Dt. 01.06.2021 notified that section 112 of the Finance Act, 2021 will be made applicable from 01.06.2021.
The text of above notification is as under:
“In exercise of the powers conferred by sub-section (2) of section 1 of the Finance Act, 2021 (13 of 2021) (hereinafter referred to as the said Act), the Central Government hereby appoints the 1st day of June, 2021, as the date on which the provisions of section 112 of the said Act shall come into force.”
Section 112 of the Finance Act, 2021 deals with amendment to section 50 wherein the amendment that interest shall be charged on net cash liability has been made retrospectively. The amendment to section 112 is as under:
“In section 50 of the Central Goods and Services Tax Act, in sub-section (1), for the proviso, the following proviso shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2017, namely:––
“Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be payable on that portion of the tax which is paid by debiting the electronic cash ledger.””