The government has notified that from September 1, interest on delayed goods and services tax (GST) will be payable on net basis, by accounting for input tax credits and refunds. This decision was taken after government had issued recovery notices to several businesses demanding interest on gross liability. The FM had said in a statement that “The Council also decided to levy interest on delaying in paying GST on net basis and not gross basis. For this, GST laws will also be amended with retrospective effect of July one 2017.”
