PAYMENT OF GST IN INSTALLMENT

How to Pay GST Demand and Taxes in Installment –Section 80 of CGST Act 2017

After the implementation of GST Act, many dealers has done mistake in complying with GST law, due to unawareness of law or due to mala fide intention. When they come to the notice of department, the department will take necessary action for the recovery of dues from the dealer. In some cases the recoverable amount of taxes/ demand raised is of such high value that, the dealer is not in a position to pay the same at same point of time or if paid in one installment then it will adversely affect the business of the dealer.

To overcome such kind of situation, the GST Department has given some relief to the dealer which is specified in Section 80 of CGST Act 2017. Under this section, department gives an opportunity to the dealer to pay due taxes/demand in installment, however the dealer as to comply with condition as specified in Section 80 of CGST Act 2017 and applicable rules.

Highlights of Section 80 of CGST Act 2017 are as follows:

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 means any taxes due payable at time of return filing (self assessed) is not covered under this section

√ The maximum monthly installment under this section will be 24

√ The dealer has to pay interest under Section 50 on these installments

Precaution to take after availing this opportunity:

Provided that where there is default in payment of any one installment 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.

As per Rule No – 158 (1) of CGST Rules 2017, for availing benefit of section 80 of CGST Act 2017, a dealer has to make an application electronically in Form GST DRC-20, seeking extension of time for the payment of taxes or any amount due under the Act or for allowing payment of such taxes or amount in installments.