How to pay gst net tax liability interest

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This discussion clarifies how to pay interest on GST net tax liability, which is calculated on the difference between output tax and input tax credit. Interest is typically paid via DRC-03 or through the GSTR-3B return. The standard annual interest rate is 18%, though reduced rates of 9% may apply if specific conditions and recent notifications, particularly those related to the pandemic period, are met. The query confirms that returns for FY 2017-18 and FY 2018-19 have been filed.

kameswararao

kameswararao (Querist)

09 July 2020 sir how to pay gst net tax liability interest thru drc or gstr 3b and interest rate

CA Shubhi Khandelwal

CA Shubhi Khandelwal (Expert)

09 July 2020 Net Tax Payable shall be: Total Output Tax Liability- Total Input Tax Credit (for respective months) and the interest shall be levied on the net tax payable

kameswararao

kameswararao (Querist)

09 July 2020 thank you very much and interest rate percentage madam

CA Shubhi Khandelwal

CA Shubhi Khandelwal (Expert)

09 July 2020 18% p.a
But if return is filed according to the recent notifications during the corona pandemic, it will change. I mean there are less rate of Tax@9% if notifications are complied.

kameswararao

kameswararao (Querist)

09 July 2020 madam interest paid through drc -03 or current return gstr3b

CA Shubhi Khandelwal

CA Shubhi Khandelwal (Expert)

09 July 2020 For which period is the liability?

kameswararao

kameswararao (Querist)

09 July 2020 jul 2017 to mar 2019

CA Shubhi Khandelwal

CA Shubhi Khandelwal (Expert)

09 July 2020 Are GSTR-9 returns filed for both the years?
FY 2017-18 & FY 2018-19??