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
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.
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