Amendment of
section 16.
In section 16 of the Central Goods and Services Tax Act,
in sub-section (2),––
(i) in the second proviso, for the words “added to his output
tax liability, along with interest thereon”, the words and figures
“paid by him along with interest payable under section 50” shall
be substituted;
(ii) in the third proviso, after the words “made by him”, the
words “to the supplier” shall be inserted.
Analaysis:
(i)
Replaced by
paid by him along with interest payable under section 50.
Initially government wants to implement the GST law with the preventive ideology. After major non-compliance of section 16 on large scale basis. Instead of government take further actions on this matter of section 16, now the taxpayer need to compute the delay first and pay tax along with interest if payment not made within 180 days. Taxpayer will make for reversal via GSTR 3B credit or pay in cash (Challan).
Simply government pass on the additional liability and burden on taxpayer to comply this 180 days time limit for payment to supplier, rather the idea of automatic reversal of ITC by portal it self.
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(ii) change in language
“made by him”, changed to “to the supplier”
Simply it means if taxpayer reversed ITC in past and made payment to supplier now, than taxpayer eligible take credit as and when it makes payment to supplier.
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