Credit Balance in GST Portal, but GST Pending to pay
This query is : Resolved
08 February 2021
Dear GST Expert,
I have a query, Suppose We have Credit bal on GST portal since April'20 Say Rs. 25Lakhs...& Unpaid GST filing of Rs. 15 Lakhs in Aug'20 & 9.8 Lakhs in Sept'20.. I'm supposed to get interest on credit bal or will it be charged interest from Aug' & Sept; for unpaid Inv.
Plz justify & guide asap..
Thanks & Regards,
Bharti Sharma
I have a query, Suppose We have Credit bal on GST portal since April'20 Say Rs. 25Lakhs...& Unpaid GST filing of Rs. 15 Lakhs in Aug'20 & 9.8 Lakhs in Sept'20.. I'm supposed to get interest on credit bal or will it be charged interest from Aug' & Sept; for unpaid Inv.
Plz justify & guide asap..
Thanks & Regards,
Bharti Sharma
06 July 2024
In the scenario you've described, there are two aspects to consider regarding interest on GST credit balance and interest on unpaid GST filings:
### Interest on GST Credit Balance:
1. **Accumulated Credit Balance Since April 2020:**
- If you have had a credit balance on the GST portal since April 2020 (Rs. 25 lakhs), generally, no interest accrues on this credit balance. The GST law does not provide for payment of interest on credit balances held with the government.
### Interest on Unpaid GST Filings:
2. **Unpaid GST Filing Liabilities:**
- You mentioned unpaid GST filings of Rs. 15 lakhs in August 2020 and Rs. 9.8 lakhs in September 2020.
- According to GST rules, if GST filings are not paid within the due date, interest is applicable on the amount of unpaid tax. The interest is calculated from the due date of filing till the actual date of payment.
### Clarification:
- **Interest on Credit Balance:** No interest is earned on a credit balance held on the GST portal. It remains static unless utilized for offsetting future tax liabilities.
- **Interest on Unpaid GST Filings:** Interest will be applicable on the unpaid GST filings (Rs. 15 lakhs for August 2020 and Rs. 9.8 lakhs for September 2020) from the respective due dates of filing till the date of actual payment. The interest rate applicable is typically specified under GST rules and varies depending on whether you are a taxpayer registered under CGST Act, IGST Act, or SGST Act.
### Conclusion:
To summarize, while you do not earn interest on the credit balance held on the GST portal, interest will accrue on any unpaid GST filings from their respective due dates until the date of actual payment. It's essential to ensure timely compliance with GST filing and payment obligations to avoid interest liabilities and maintain regulatory compliance. If you have specific concerns or need further clarification, consulting with a GST practitioner or tax advisor would be advisable.
### Interest on GST Credit Balance:
1. **Accumulated Credit Balance Since April 2020:**
- If you have had a credit balance on the GST portal since April 2020 (Rs. 25 lakhs), generally, no interest accrues on this credit balance. The GST law does not provide for payment of interest on credit balances held with the government.
### Interest on Unpaid GST Filings:
2. **Unpaid GST Filing Liabilities:**
- You mentioned unpaid GST filings of Rs. 15 lakhs in August 2020 and Rs. 9.8 lakhs in September 2020.
- According to GST rules, if GST filings are not paid within the due date, interest is applicable on the amount of unpaid tax. The interest is calculated from the due date of filing till the actual date of payment.
### Clarification:
- **Interest on Credit Balance:** No interest is earned on a credit balance held on the GST portal. It remains static unless utilized for offsetting future tax liabilities.
- **Interest on Unpaid GST Filings:** Interest will be applicable on the unpaid GST filings (Rs. 15 lakhs for August 2020 and Rs. 9.8 lakhs for September 2020) from the respective due dates of filing till the date of actual payment. The interest rate applicable is typically specified under GST rules and varies depending on whether you are a taxpayer registered under CGST Act, IGST Act, or SGST Act.
### Conclusion:
To summarize, while you do not earn interest on the credit balance held on the GST portal, interest will accrue on any unpaid GST filings from their respective due dates until the date of actual payment. It's essential to ensure timely compliance with GST filing and payment obligations to avoid interest liabilities and maintain regulatory compliance. If you have specific concerns or need further clarification, consulting with a GST practitioner or tax advisor would be advisable.
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