Interest calculation in GST
Query (Issue) Started By: – anuja bhandari Dated:- 26-9-2018 Last Reply Date:- 26-10-2018 Goods and Services Tax – GST
Got 6 Replies
GST
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?
\nReply By Nitika Aggarwal:
\nThe Reply:
\nDear Sir,
\nAs 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 a<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n edited after making debits in electronic cash ledger or electronic credit 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n omething I can remove or take refund of (considering I do not fall in Sec 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Interest calculation in GST Query (Issue) Started By: – anuja bhandari Dated:- 26-9-2018 Last Reply Date:- 26-10-2018 Goods and Services Tax – GSTGot 6 RepliesGSTIf 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 … Continue reading “Interest calculation in GST”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14059","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14059","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14059"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14059\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14059"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14059"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14059"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\nAnother school of thought
\nInterest 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.
\nWhen this fact is taken into account the law is against the basic philosophy behind levy of interest. This could be challenged by filing wr<\/p>\n
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\nAlso, 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.
\nPlease let me know if any views on the above. Appreciate the responses. Thank you.
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nPay tax means ₹ 10 lacs. It can be paid by two way that is either by cash or by <\/p>\n
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