Understanding Section 80 and Rule 158 of the CGST Act
Application for Deferred Payment/Payment in Instalments GST DRC-20
When businesses find themselves short on cash, the government can sometimes help them by letting them pay their taxes slowly, over time. This is explained in Section 80 of the CGST Act. Basically, if a business can’t pay its tax all at once, It can ask to pay in parts over up to 24 months, but it will need to pay some extra as interest as per the provisions of Section 50 of CGST Act, 2017.
There’s a special form, called FORM GST DRC-20, that businesses need to fill out to ask for this facility. The Commissioner will check with other tax officers to see if the business really can’t pay all at once i.e. meaning thereby Commissioner Shall pass Order after calling for report from Jurisdictional Officer as to financial ability of the Taxable person. He will make this order after looking at the business’s financial situation.
Eligible Taxable Person will file Application in the form of GST DRC-20
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Ineligible Persons
However, not every business can use this option, This deferment/ Instalment facility shall not be allowed in following cases:
- If a business has defaulted on payment of any GST dues for which recovery process is on;
- Taxable person has not been allowed Instalment facility in the preceding financial year;
- if the tax amount is very small, like less than ₹25,000
This rule helps businesses manage their money better without breaking the law by not paying taxes. It’s a helpful way for businesses to stay afloat during tough times while still doing their part for the country.
Deferment/Instalment Allowed Form GST DRC-21
Both Deferment and Instalment Order will be Allowed in the form of GST DRC-21
If the person defaults in payment of any one Instalment after issuing of Order in the form of GST DRC-21, Then Whole Outstanding balance will become due and payable immediately.
No Fresh Notice of recovery shall be required.
Rejection Order
Where the Commissioner finds the application unsatisfactory and consequently rejects it, as indicated in the GST DRC-21 form, it is pertinent to highlight that such an order is deemed non-appealable in accordance with the provisions outlined in Section 121 of the CGST Act, 2017.
For any further queries or assistance regarding the Application for Deferred payment/Payment in Instalments, feel free to contact us at [Taxationteam@gmail.com] We’re here to help!