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IF NO SALE & PURCHASE FOR MONTH OF APRIL 2020

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Rajesh Katkar

51 Points Posted on 10 April 2020

our turnover is in the uppermost slab of GST
what is the solution if their is no sale & purchase for month of April may if lockdown increases
then still on Zero Gst
we still have to pay 9% interest
please explain

Replies (4)

Quick Summary

This discussion addresses concerns about GST liability and interest payments during periods of no sales or purchases, such as the April/May 2020 lockdown. Experts clarify that interest is only applicable to actual tax liabilities payable to the government. If there is no outward supply and no input tax credit (ITC) to be adjusted, the tax liability is nil, and therefore, no interest is due. Filing GST returns by the extended due dates is still recommended.

Lokesh Shah

36 Points Posted on 10 April 2020

If there is no tax liability then on which amount you would be liable to pay interest @ 9%
in my preview there should be no such liability, subject to there should not be any ITC and outward discharge liability.

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 10 April 2020

@ Mr Rajesh Katkar.,

Interest applicable only to payable liability. Not for Zero Liability...

But,
File Your GST returns on or before extended due dates.

Rajkumar Patel

373 Points Posted on 10 April 2020

Interest is calculated on tax Tax Liability payable to Government which here is Nil (because donot have any liability payable).... As results os this Interest will become Zero.