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CA Final · Indirect Tax Laws · Payment of Tax

Sundaram Textiles Pvt Ltd, Coimbatore, owes GST of Rs 4,00,000 under the Act and applies electronically in FORM GST DRC-20 for payment in instalments. It has no ongoing recovery process for any default and was not refused the facility in the preceding financial year. Under the CGST Rules, 2017, what is the maximum number of monthly instalments the Commissioner can allow?

The Commissioner may allow at most twenty-four monthly instalments. After the DRC-20 application and a report on financial ability, the order in FORM GST DRC-21 can permit payment in monthly instalments not exceeding twenty-four, and no disqualifying condition applies to Sundaram Textiles here.

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

Explanation

Rule 158(2) allows the Commissioner, after considering the request and the jurisdictional officer's report, to issue an order in FORM GST DRC-21 allowing monthly instalments not exceeding twenty-four. The amount of Rs 4,00,000 exceeds the Rs 25,000 floor and no bar applies. Twelve, eighteen or thirty-six are not the limit in the Rules.

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