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GST Interest liability under Section 50 of CGST Act

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Arora

Student

35 Points Posted on 04 April 2020

Hi,

A cousin of mine has received a mail from the local GST office, titled GST- Interest liability under Section 50 of CGST Act – on account of the delay in filing the GSTR-3B Returns for FY 2017-2018, 2018-19 and 2019-20

In this mail the interest has been calculated on cash set off & ITC set off. No further details about the interest and how it is calculated are given.

Few queries-

1. Why didn't the government charge interest back when the returns were filed late?

2. How can they demand interest without giving a warning?

3. This mail was received 2 weeks ago. Will they count the in between days and increase the interest amount?

4. Can we ask them the details as in how they calculated the interest?

Thanks

Replies (2)

Quick Summary

A user received a GST notice regarding interest liability under Section 50 of the CGST Act for delayed GSTR-3B filings from 2017-2020. The notice calculates interest on both cash and ITC set-offs without providing detailed calculations. The user is seeking clarification on why interest wasn't charged earlier, the legality of demanding interest without warning, how interest accrues over time, and if they can request a breakdown of the interest calculation.