Section 80: Payment Of Tax And Other Amount In Instalments | The Central Goods and Services Tax Act, 2017

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Explanation using Example

Imagine a scenario where Mr. Sharma, who runs a manufacturing business, has accumulated a significant amount of GST liability due to an unexpected downturn in his business. He is unable to pay the entire amount by the due date. Aware of his situation, Mr. Sharma approaches the Commissioner of GST and files an application requesting an extension of time for payment of his GST dues.

The Commissioner reviews his case and, considering Mr. Sharma's past compliance history and the genuineness of his current financial hardship, decides to grant him the permission to pay his GST dues in monthly instalments over a period of 18 months. This is accompanied by the condition that Mr. Sharma must continue to pay interest on the outstanding amount as per section 50 of the CGST Act, 2017.

Mr. Sharma is relieved as he can now manage his cash flow better and keep his business running. However, he is also aware that if he defaults on the payment of any one instalment by the due date, the entire outstanding balance would become immediately due and could be recovered by the authorities without any further notice.