Section 50 of the CGST Act, 2017 — Interest –-- The petitioner’s grievance relates to levy of interest on the gross returned income and not on the net cash amount. The court observed that the proviso to Section 50 was substituted by the Finance Act, 2021 with retrospective effect from 01.07.2017, which states that interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date, shall be payable on that portion of the tax which is paid by debiting the electronic cash ledger.”

Held that:- The Hon’ble High Court allowed the writ petitions with further direction that respondents shall issue notice and hear the petitioners before quantifying the interest to be paid by the petitioners.