FY - 18-19 - DRC 07 - Interest For Delayed Cash Payment in GSTR -3B

The GST Amnesty Scheme was introduced to provide relief to taxpayers, especially those facing late fee or interest issues on delayed tax filings. However, the waiver under the scheme applies to late fees for delayed GSTR-3B filings within the specified periods, rather than interest on delayed tax payments.

Interest under GST is governed by Section 50 of the CGST Act, 2017, and while certain notifications have provided relief for the calculation of interest (such as charging interest on net tax liability instead of gross), this depends on the timing of the payment and notifications applicable to that period.

Since you paid tax through the Cash Ledger for FY 18-19 but did not pay interest, and you’ve now received DRC-07, it is recommended to:
1. Review the notification applicable to your specific case to confirm if any interest waiver applies.
2. Confirm whether your delayed payment aligns with any relief measures under the Amnesty Scheme or other applicable GST provisions.

The Scheme does not apply to Late payment of GST as per the circular issued by Department. However, there is no such restriction in Sec 128A and therefore matter is not free from doubt. One may argue that the circular issued by department can not put additional condition, the case of interest on late payment of GST is also covered under the Scheme.

However, kindly ensure that the demand is raised u/s 73 and not u/s 75(12).