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GST ON DELAYED PAYMENT IF RETURN ALREADY FILLED

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Gurjeet

Accounts

90 Points Posted on 02 September 2022

Res/Sir,
I filled Dec-18 3B with shirt payment of tax and clear it's balance liability in Dec-19 3B . sufficient ITC was available during the corresponding period from Dec 18 to Dec 19. Are we liable to pay interest on it. Pls clear my question with case law or ruling.

Thanks

Replies (3)

Quick Summary

This discussion addresses whether interest is payable on GST if the tax payment was delayed but the return was filed on time, with sufficient ITC available. The consensus suggests that interest is generally leviable on the gross tax liability if paid in a subsequent financial year, irrespective of ITC balance. However, one response advises that no interest is payable by referring to Section 50 of the GST Act.

CS Advocate Abhishek Goyal

M Com FCS LLB M-AIMA

11027 Points Posted on 02 September 2022

In terms of section 50(1) read with rule 88B(2) interest is leviable on gross tax liability to the extent it remained unpaid, irrespective of e credit ledger balance since the liability for FY 18-19 was discharged in FY 19-20. Had it been discharged in the same FY but in any subsequent month it would have been levied only on net cash basis.