dear experts
please guide us on the situation where an assessee has filed GSTR3b for the month of January 2020, Feb 2020 e
and March 2020 as a nil return and also filed GST R1 as a nil timely even there was turnovers in all the respective 3 months. but in calculation there was no GST liability at all in any of the month because of the excess availability of ITC I mean the liability was zero after adjusting the ITC available for each respective month.
now when the assessee files GST r3b for the month of April 2020 he filled all the turnover of above mentioned three months.
the question is the liability of all the three months is zero because of the access availability of ITC wheather interest will be leviable in any manner at the time of filing the GST r3b of April month.
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Replies (3)
You will be liable to pay GST on entire gross tax liability. For your reference proviso to section 50(1) is provided
'the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.'
This means that for in case of any supply in a tax period, tax has to be paid on or before due date. If there is delay in furnishing the return in which supply is made, only in that interest will be levied on net liability.
It appears that yours is a case of supply made in a month but not disclosed and now you wish to disclose in next return. Interest will be levied on gross liability.
'the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.'
This means that for in case of any supply in a tax period, tax has to be paid on or before due date. If there is delay in furnishing the return in which supply is made, only in that interest will be levied on net liability.
It appears that yours is a case of supply made in a month but not disclosed and now you wish to disclose in next return. Interest will be levied on gross liability.
Dear sir you
Agree with Hemal Sir. You have to pay Interest @ 18% on GROSS TAX LIABILITY. You are disclosing your Taxable Turnover now. In the previous Returns you have showed the same as NIL inspire of having taxable turnover. Hence the tax was not paid that time ( neither in cash component or ITC utilisation ). Hence you have to pay tax now for the previous months along with Interest @ 18% p.a. on Gross Tax Liability.
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