On 5th July 2022, the CBIC notifies the implementation of clause (c) of section 110 and section 111 of Finance Act 2022 vide Notification No. 09/2022-Central Tax.
In the clause (c) of section 110, it is said that A registered person can transfer any amount lying in the tax, interest, penalty, fee or any other amount for:-
- IGST, CGST, SGST, UTGST or cess’ or
- IGST or CGST of a distinct person as specified in sub section 4 and 5 of section 25.
Such transfer shall be deemed as a refund from the electronic cash ledger and there is an exception that if there is a tax payable in the electronic liability register then there shall not be any transfer.
In the section 111, it is said that for those taxable person who has wrongfully availed and utilised the ITC, they shall be liable to pay the interest @ 24% and the said amendment shall retrospectively applies with effect from 01-07-2017.
The said notification giving effect to the clause (c) of section 110 and section 111 of the Finance Act 2022 shall be notified with effect from 5th July 2022.
The notification can be accessed at https://taxinformation.cbic.gov.in/
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