Calculation of Interest on delay deposit of GST

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This discussion clarifies how to calculate GST interest when there's a delay in offsetting the cash ledger, not necessarily the deposit itself. The interest is charged at 18% per annum on the net cash liability for each day of delay, starting from the day after the due date of the return until the date of offsetting. An example illustrates calculating interest for a 5-day delay based on the net cash payable.

Daya

Daya (Querist)

16 January 2022 what is excel formula to Calculate Interest On delay deposit of GST.
from which date to date of deposit of GST payment.

CA Altamush Zafar

CA Altamush Zafar (Expert)

17 January 2022 Its not delay of deposit but the delay in offsetting which will attract interest. The due date for GSTR-3B is 20th so that is the due date of payment. If you have deposited tax on 18th but you offsetted your cash ledger on 21st you will have to pay interest for one day @ 18%.pa

CA Puja Sharma

CA Puja Sharma (Expert)

17 January 2022 The interest is chargeable @ 18% on the net tax liability after setting off the ITC from output tax liability.
Suppose the due date for return was 20th December 2021 and you filed it on 25th Dec 2021. Tgen the interest should be calculated for (25-20) days*18%*net liability payable in cash

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