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Interest on delayed payment of GST

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ACCOUNTANT
205 Points Posted on 06 September 2019
if an assessee paid gst after due date, then interest is calculated whether taxable amount or otherwise the taxable amount after claimed ITC Amount?. please give your valuable reply.
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On 06 September 2019 at 13:08 Report
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Employed
258 Points Posted on 06 September 2019
Interest shall be calculated @ 18% p.a after the due date of filling monthly return Gstr 3b upto date of actual payment. Interest shall be calculated on taxable amount
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On 06 September 2019 at 13:46
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Tax Consultant
1024 Points Posted on 06 September 2019
mr Sushant Kumar,
I hope you are going wrong, so the as -

interest will be calculated as follows
outward Tax - Input Tax credit = Tax Payable
on Tax payable you have to calculate the interest @ 18% for the days you are late formula is :

Tax Payable * no of days late / 365 * 18%
1 Reply
On 06 September 2019 at 16:11
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294 Points Posted on 06 September 2019
Interest shall be calculated in Net Tax payable amount.
1 Reply
On 06 September 2019 at 16:21
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Tax Consultant
1024 Points Posted on 06 September 2019
yes sir interest will payable on net tax payable as given in previous calculation
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On 06 September 2019 at 16:23
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Registered Insolvency Professional Regis
54 Points Posted on 06 September 2019

Interest shall be levied  @ 18% on NET tax liability, i.e. the amount of GST which has been paid thru Electronic Cash ledger, if supplies made during a tax period have been declared in return for said period, but furnished after the due date.

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On 06 September 2019 at 21:27
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Tax Consultant
1024 Points Posted on 06 September 2019
mr v hajib,
it doesnt means only cash ledger I have said net tax liability. then if you pay via credit ledgers or cash ledger it doesn't matters

you have to calculate interest on net tax liability.
1 Reply
On 06 September 2019 at 23:42
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employee
814 Points Posted on 07 September 2019
Interest to be calculated on Net tax liability.

After Megha engineering and infra case of Telangana., govt has introduced proviso under section 50 in fin bill 2019 to give effect that interest to be paid on Net.
3 Reply
On 07 September 2019 at 00:37
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Student CA IPC / IPCC
151 Points Posted on 04 October 2019
So if your ITC balance is more than your payment liability, then no interest will be paid ??We can set of the late payment of tax fully with ITC balance (if we have so )
2 Reply
On 04 October 2019 at 19:40


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