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Interest on gst payment

Lila (Job) (490 Points)

03 September 2019

1. Is it compulsory to calculate and pay interest on GST liability?

2. If we are filing for April'18, interest should be calculated for what period. Due date shown on return is 31/03/19.

3. If we have missed paying interest for one month (say - Mar 18), how can it be rectified?

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8 Replies

Lila (Job) (490 Points)
Replied 03 September 2019

Anyone on this?

Akshay Jain (Tax Consultant) (1024 Points)
Replied 03 September 2019

you have to pay this liability (interest) via DRC-03 under voluntary payment

sujith kumar dasa (banglore) (1496 Points)
Replied 03 September 2019

1. Yes, Interest payment is mandatory as per provisions of the act

2. Due date is 20th of next month of filing. For Apr'18 due date is 20th May 2018.

3. If interest is missed to be paid, then same can be rectified in next month return, please note the due date for rectification is six months from end of Financial Year. If rectification is not possible before due date, then same can be paid through DRC-03

Akshay Jain (Tax Consultant) (1024 Points)
Replied 03 September 2019

yes Sujith sir is too correct

Uttam (employee) (814 Points)
Replied 04 September 2019

1. If you have net tax payable liability for a month then you are required to pay interest at 18% or 24%

2. Due date to file April 2018 GSTR3B was 22 May 2018.

3. If interest liability is missed for FY2017-18 pls make use of DRC-03 and if the interest is pertaining to period FY2018-19 you can make it in the returns before 30 Sept 2019 or pay it using DRC-03.

Lila (Job) (490 Points)
Replied 05 September 2019

Thanks for your replies.

On GST portal, due date for April'18 is showing as 31/03/19. Even the late fee (auto calculated by system) is being calculated from April 1, 2019. It seems due date for April'18 was extended till Mar'19. In such scenario, how interest should be calculated - from May 18 or April 19.

How interest paid through DRC 03 is to be shown in annual return.

Akshay Jain (Tax Consultant) (1024 Points)
Replied 05 September 2019

you have to calculate interest from April 19.
it doesn't need to disclose in annual return as per 2017-18 format in 2018-19 it can be changed.
you have to keep its receipts only.

sujith kumar dasa (banglore) (1496 Points)
Replied 06 September 2019

Please note the due date shown in portal is only filing of return and for payment due dates were 20th of next month. Pleass refer notification 76/2018 - central Tax the notification which extended due date for filing of GSTR-3B for period Jul-17 to Sep-18 to Mar-19. the notification clearly says it is only for late fees the exemption and not for payment of tax and hence interest would be applicable from 20th of next month unless extended in earlier notifications.