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CMA Intermediate · Direct and Indirect Taxation · Returns and Payment of Taxes

Under the CGST Act, 2017, the Commissioner may allow a taxable person to pay an amount due in monthly instalments. What is the maximum number of monthly instalments permitted?

The maximum is twenty-four monthly instalments. The Commissioner may allow this on the taxable person's application, for reasons recorded in writing, and subject to interest under section 50 and the prescribed conditions. The statute does not set any lower or higher cap for the instalment number.

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

Explanation

The provision on payment of tax in instalments allows the Commissioner, on application and for reasons recorded in writing, to permit payment in monthly instalments not exceeding twenty-four. Twelve, eighteen and thirty-six are not the statutory limit.

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