Sir. one of our client paid total taxes and filed GST returns belated...but his liability of interest of 4.0 laks but his itc balance is 6.0 lakhs....but his itc for the f.y 2020.21,. interest is for f.y 2019.20...recently one month back he was expired...please advise sir...
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Quick Summary
This discussion addresses whether a client's outstanding GST interest liability can be offset against their Input Tax Credit (ITC) balance. The consensus is that interest must be paid in cash, and cannot be adjusted against ITC, even if the ITC balance is sufficient. The situation is further complicated by the recent passing of the client, requiring specific GST formalities for deceased individuals.