Doubt on interest calculation of tax liability

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129 Points Posted on 24 November 2020

Hi all, 

I have the following doubt on calculating interest for the tax liability. 

Let consider tax amount is 10000 & ITC available is 5000. 

Should I calculate interest after reducing ITC or should calculate interest for full tax amount of 10000

Thanks in adavnce

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On 24 November 2020 at 21:14 Report
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Quick Summary
This discussion clarifies how to calculate interest on GST tax liability. The consensus is that interest should be calculated on the net cash liability after deducting available Input Tax Credit (ITC), not on the full gross tax amount. A helpful resource is provided for further reading on GST payment rules.

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22 Points Posted on 24 November 2020
Calculate after deducting ITC.. Interest is leviable on net cash liability.
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On 24 November 2020 at 22:11
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Asst. Manager
168 Points Posted on 25 November 2020

please read before proceeding https://gstindianews.info/gst-late-fees-returns-payments-wrong-itc-reversal-notifications/#grossnet

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On 25 November 2020 at 17:44

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