Interest Calculation – Late Payment of GST
Query (Issue) Started By: – Jatin Kumar Dated:- 30-11-2017 Last Reply Date:- 2-12-2017 Goods and Services Tax – GST
Got 10 Replies
GST
Sir,
\nWe have not filed GSTR 3B Return for the month of October, 2017 due to tax fully not paid.
\nWe have already done payment of ₹ 2,00,000 out of ₹ 3,25,000 GST Liability after avail of ITC.
\nMy question is which amount taken for interest calculation for GST late payment ₹ 1,25,000 (325000 – 200000) or 3,25,000 (Rs. 2,00,000 balance in Electronic Cash Ledger) ?
\nRegards,
\nJatin Kumar
\nReply By KASTURI SETHI:
\nThe Reply:
\nRs.1,25,000\/-
\nReply By CS SANJAY MALHOTRA:
\nThe Reply:
\n₹ 3,25,000\/- as return submitted but no tax payment made as of now.
\nDeposit of cash does not mean that the liability has been paid off till the same is debited.
\nInterest is applicable from due date till the debit of tax amount in E Cash \/ credit ledger.
\nWith due regards to Sh Kasturi ji, GST retu<\/p>\n
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\nBoard has clarified this aspect in Circular No. 7\/7\/2017-GST dated 01.09.2017 (Para 11 & 12) issued for System based Reco of GSTR-3B
\nSubmission of GSTR-3B without payment of taxes:
\n11. Where, for some reasons, the registered person has only submitted the return in FORM GSTR-3B and has not made the payment of taxes by debiting the same from his electronic cash or credit ledger, the return shall still be subjected to the reconciliation process as detailed above. Such registered person should furnish the details in FORM GSTR-1, Page 4 of 4 FORM GSTR-2 and sign and submit the return in FORM GSTR-3 along with the payment of the due taxes as per the provisions of section 49 of the Act.
\nHowever, since the payment was not made on or before the due date, the registered person shall be liable for payment of interest on delayed payment of tax starting from 26th day of August, 2017 till the date of debit in the electronic cash and \/ or credit ledger but will not be liab<\/p>\n
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\nProvisions already exists in GST law to make Tax payments in instalments subject to approval from Commissioner with payment of Interest later on.
\nReply By KASTURI SETHI:
\nThe Reply:
\nDear Querist,
\n This is gross injustice with the assessees. Common Portal System should be amended. Make a representation to GST Council.
\nReply By CS SANJAY MALHOTRA:
\nThe Reply:
\nWith due regards to all, am against any relaxation to one end if the other end suffers.
\nRelaxation for interest would mean Injustice with Receiver of goods, as until the tax is paid by the supplier and return is filed, Buyer will not get credit despite of entry being auto-populated from GSTR-1 to GSTR-2. The same will also cause revenue loss to Government.
\nSupplier should comply the provisions of law and make tax payments on time or challenge the constitution validity in High Court.
Discussion Forum – Knowledge Sh<\/p>\n
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