GST Jamku AIPayment of tax and other amount in instalments.
Section 80
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.
When a taxable person faces challenges in paying the required amount under the Act, there is an avenue for relief. The Commissioner has the authority to extend the payment deadline or permit the payment to be made in monthly instalments. This provision, however, comes with certain conditions and limitations, as outlined below.
Extension of Time for Payment: Upon receiving an application from a taxable person, the Commissioner can, after recording the reasons in writing, grant an extension for the payment deadline. This extension is applicable to any amount due under the Act, excluding the self-assessed liability mentioned in a return.
Monthly Instalments: The Commissioner has the discretion to allow the taxable person to pay the outstanding amount in monthly instalments. However, the number of instalments cannot exceed twenty-four. It's important to note that interest under section 50 is still applicable during this extended payment period.
Conditions and Limitations: The extension of time and the option for monthly instalments are subject to specific conditions and limitations as prescribed by the relevant authorities. Taxpayers must adhere to these terms to avail themselves of this flexibility in payment.
Default Consequences: In the event of default in payment of any single instalment on its due date, the entire outstanding balance becomes due and payable immediately. No further notice is required, and the outstanding amount is then liable for prompt recovery.
Conclusion: This provision provides a measure of flexibility for taxable individuals facing financial challenges. However, it is crucial to understand and comply with the prescribed conditions to ensure a smooth and fair process in availing this relief.