We have filed GST returns late by 40days and paid Late fees Rs:25/per day. We have No tax liability i.e, we have enough and excess Input (Electronic credit ledger).
whether we are liable for Interest U/s 50?
If Yes? On which value we have to calculate Interest? If Not? On what basis?
21 February 2019
Please clarify your NIL tax liability is due to adjustment of ITC or due to No turnover. In case of No turnover, there is no tax liability in fact and hence no interest is payable. In case of NIL tax liability due to adjustment of ITC, you need to pay Interest on Gross tax liability before ITC allowance
25 February 2019
Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council.
A taxable person who makes an undue or excess claim of input tax credit under sub-section (10) of section 42 or undue or excess reduction in output tax liability under sub-section (10) of section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four per cent., as may be notified by the Government on the recommendations of the Council.
25 February 2019
Interest to be paid on gross liability is only on the basis of Standing order No: 01/2019 dated 04.02.2019 passed by Hyderabad GST Commissionerate. In my opinion it should be charged on net liability or should be charged on the amount which has been paid late to revenue...
26 February 2019
Yes Sir, We are from Hyderabad when I went to GST office regarding clarification on this matter they told '' interest payable on tax liability upto the date of setoff of liabilities in GST return.If you are not setoff the liabilities you are liable for interest'' . So many appeals has been received in various courts on this matter because ITC available in Credit ledger is borne by us. No interest is given by the CBIC to ITC available in the credit ledger, So How can we are liable for thesame. Its my opinion sir.
CAclubindia
