Interest on late payment of gst

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This query is : Resolved

Rohit Kaushik (Querist)

20 November 2018 Dear All,

If we are making late payment of GST then it is liable to interest @ 18% p.a.

can you pls clear the doubt, that on which amount such 18% be calculated:

whether on Net gst liablity after adjustment of Input GST credit or

on gross amount without deducting input credit.

pls clear urgently.

Regards,
Rohit Kaushik

CA Idris M K

CA Idris M K (Expert)

20 November 2018 An Outstanding GST liability in Electronic liability ledger to the extent not been sett off either by electronic credit ledger or by electronic cash ledger will be treated as an outstanding liability and shall attract interest.
Hence, interest shall be attracted on whole amount.

Note: this is my view, there might be a difference of opinion

CA Ankit R Momaya

CA Ankit R Momaya (Expert)

20 November 2018 I also endorse the above view of CA Idris M K that interest will apply on the Gross Amount.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

29 October 2026 Under current law, interest on delayed tax applies only to the part paid through the electronic cash ledger, not the gross liability, under the Sec 50(1) proviso (retrospective from 1 Jul 2017). Gross interest applies only where the return is filed after Sec 73/74 proceedings have started.

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