Goods and Services Tax – Started By: – anuja bhandari – Dated:- 26-9-2018 Last Replied Date:- 26-10-2018 – If the total GST liability is 10 Lacs for Aug 2018, Eligible ITC availed is 7 Lacs, Balance challan paid on 25 Sept 2018 with interest calculated on 3 lacs for 5 days delay. Return filed on 25 Sep 2018. Whether interest to be calculated on full liability of 10 lacs or Challan payable amount of 3 lacs? – Reply By Nitika Aggarwal – The Reply = Dear Sir, As per provisions contained in Section 50 of CGST Act, 2017, Interest shall be paid on full amount i.e. ₹ 10 Lacs for 5 days delay in return filing. For the sake of easy reference, the relevant extracts from the aforesaid section is reproduced herein below:- Interest on delayed pay
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ledger. Further it is important to note that, the electronic liability register can be credited only at the time of filing the monthly return, i.e., GSTR-3B / GSTR-3. Another school of thought Interest for the delayed payment of tax is considered to be levied for the reason that there would be a loss to Government, to the extent of such delay. However, in cases where there is sufficient balance in electronic cash ledger and electronic credit ledger and such credit is reflecting in GSTR-2A there would be no loss to the treasury. When this fact is taken into account the law is against the basic philosophy behind levy of interest. This could be challenged by filing writ petition. – Reply By KASTURI SETHI – The Reply = Dear Querist, .Debit ent
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
54/55 refund provisions), the ITC is with the Government. Only because of the machinery provision of filing of a GSTR 3B return that it needs to be debited could be questioned. Also, in case of high volume output tax of a taxpayer where ITC is in excess and delay of filing return due to some unavoidable reason, the interest could be exponentially high just because the return was delayed. Wherein the taxpayer is paying prescribed late fee for filing the return. Please let me know if any views on the above. Appreciate the responses. Thank you. – Reply By Ganeshan Kalyani – The Reply = Pay tax means ₹ 10 lacs. It can be paid by two way that is either by cash or by input tax credit. Thus the provision which states that tax has to be paid
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =