Skip to content

CA Final · Indirect Tax Laws · Payment of Tax

Sundaram Textiles Ltd., a registered person in Tamil Nadu, has an outstanding GST demand of ₹3,00,000 that it cannot pay in one go. It files FORM GST DRC-20 seeking payment in instalments. It has no existing default under any GST law with recovery pending, and it was allowed instalments in the preceding financial year. Under the CGST Rules, 2017, what is the maximum number of monthly instalments the Commissioner may allow in FORM GST DRC-21?

The Commissioner may allow at most twenty-four monthly instalments. Rule 158(2) caps the instalments at twenty-four, and none of the disqualifying conditions applies on these facts, so the facility is available up to that ceiling.

  1. ATwelve
  2. BEighteen
  3. CTwenty-fourCorrect
  4. DThirty-six

Explanation

Rule 158(2) lets the Commissioner allow further time or payment in monthly instalments not exceeding twenty-four. The amount is above ₹25,000 and no bar applies, since being allowed instalments in the preceding year is not a bar (only NOT being allowed is). Twelve or eighteen are not the stated ceiling, and thirty-six exceeds the limit.

Did you get it right without looking?

One question tells you little. A timed set on Payment of Tax shows your real accuracy, how long you take and where you lose marks.

Practise Payment of TaxFree diagnostic mock

More Payment of Tax questions