Section 80 of GST – Payment of tax and other amount in instalments. Complete details for GST Section 80. In this section you may find all details for “Payment of tax and other amount in instalments” as per GST Act 2017.
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Section 80 of GST – Payment of tax and other amount in instalments
On an application filed by a taxable person, the Commissioner may, for reasons to be recorded in writing, extend the time for payment or allow payment of any amount due under this Act, other than the amount due as per the liability self-assessed in any return, by such person in monthly instalments not exceeding twenty four, subject to payment of interest under section 50 and subject to such conditions and limitations as may be prescribed:
Provided that where there is default in payment of any one instalment on its due date, the whole outstanding balance payable on such date shall become due and payable forthwith and shall, without any further notice being served on the person, be liable for recovery
Related Provisions of the Statute
|Section or Rule||Description|
|Section 50||Interest on delayed payment of tax|
Analysis of this section
Introduction – This section permits a taxable person to make payment of an amount due on instalment basis, other than the amount due as per self-assessed return. The term ‘instalments’ in general parlance would mean equated periodical payments (money due) spread over an agreed period of time. This provision happens to be a beneficial piece of law to the tax payers to pay the demand in instalments along with interest.
(i) This section empowers the Commissioner to grant permission only to the taxable person to make payment of any amount due on instalment basis, on an application filed electronically in FORM GST DRC-20,(refer Rule 158) .
The Commissioner after considering the request by the taxable person (in FORM GST DRC-20) and report of the jurisdictional office, may issue an order in FORM GST DRC-21, allowing the taxable person either extend the time or allow payment of any amount due under the Act on instalment basis.
(ii) This section applies to amounts due other than the self-assessed liability shown in any return.
(iii) The instalment period shall not exceed 24 months.
(iv) The taxable person shall also be liable to pay prescribed interest on the amount due from the first day such tax was due to be payable till the date tax is paid.
(v) If default occurs in payment of any one instalment the taxable person would be required to pay the whole outstanding balance payable on such date of default itself without further notice.
These provisions are broadly similar to the provisions contained in erstwhile Karnataka VAT Rules (Rule 53 of the KVAT Rules, 2005). However, KVAT law specifies the time frame for interest payments to be the period upto the month the last instalment is due. Further, the above provision is replicated in the GST Act, from the KVAT law.
In Central Indirect Taxes, it was allowed by the Department in exceptional cases although express provisions were not there.
Frequently Asked Questions
Whether application is to be made to pay the amount due in instalments?
Yes, an application should be made by a taxable person to the Commissioner stating the reasons for his/her request to make payment through instalments. (in FORM GST DRC-20)
Can an unregistered person be covered under the said provisions?
A taxable person is covered by the provision, While Section 2(107) defines taxable person as “a person who is registered or liable to be registered under Section 22 or Section 24”. Hence unregistered person cannot opt the benefit of this provision.
From which date does the interest liability arise?
The interest is liable to be paid from the date on which the said amount of tax became due to be paid till the actual payment of tax i.e., last instalment.
What will happen if the taxable person fails to pay any one instalment on its due date?
In such a case, the entire outstanding balance payable as on the said due date shall forthwith become due and payable without any further notice and be liable for recovery.
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