Taxman told to stop chasing biz for interest, penalty dues

Reducing GST litigation, improving ease of doing business has been a priority for the govt

- Gireesh Chandra Prasad

The Central Board of Indirect Taxes and Customs (CBIC) has told field officers that businesses which have paid tax dues in time are eligible for relief on interest and even penalty where the department has gone on appeal.

In an instruction to officials, CBIC said it has received requests from officers for clarification whether relief on interest and penalty is applicable to taxpayers where Goods and Service Tax (GST) dues have been paid within the specified time, no fraud is involved and the department has gone on appeal on certain counts such as wrong calculation of interest amount.

CBIC said that in cases where the tax demand notice only pertains to interest or penalty, the taxpayer is eligible for relief under 128A of the Central Goods and Services Tax (GST) Act.