In December 2017 output tax liability is less filed with 598600(sgst/cgst) and input also with 610000(IGST) that input is claimed on Feb 2019 in gstr 3b (610000) and output tax liability is still not paid upto the date and that error founded in while filling gstr 9. is there is interest paid on output tax liability or net liability at which rate 18% or 24%.
In credit ledger having 489000 is balanced after wrongly filing GST 3b.
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Interest on iutput tax liability
Replies (10)
Dear Akash,
Interest to be paid @ 18% on outward supplies. The output tax can be paid through credit available. however interest need to be paid cash.
ITC w.r.t FY 17-18 can only be availed until filing GSTR-3B for Sep 18 month. Hence ITC availment of 6.1 lakhs may be scrutinised and litigated.
Interest to be paid @ 18% on outward supplies. The output tax can be paid through credit available. however interest need to be paid cash.
ITC w.r.t FY 17-18 can only be availed until filing GSTR-3B for Sep 18 month. Hence ITC availment of 6.1 lakhs may be scrutinised and litigated.
Interest is paid on gross or net
Ithink interest has to be paid on 598600 @ 18%
As per the latest notification, interest is required to be payable on net amount i.e., cash payment. However the applicability is prospective.
For FY 17-18 interest on gross amount is suggested. This is the position of law as of today. How ever there can be divergent views from other experts as well.
For FY 17-18 interest on gross amount is suggested. This is the position of law as of today. How ever there can be divergent views from other experts as well.
Is this situation is considered under section 50(3) reduction of output tax liability
Plus as you took ITC in Feb 2019 you need to reverse it along with interest @ 24%
@ Dear Akash,
Undue excess reduction [section 50(3)] is for the cases where tax payer reduces tax payment with malafide intention. However in your case you would like to voluntarily pay tax, so 18% is applicable.
Undue excess reduction [section 50(3)] is for the cases where tax payer reduces tax payment with malafide intention. However in your case you would like to voluntarily pay tax, so 18% is applicable.
For Output liability interest @ 18%...
For wrongly/excess availed Input tax then interest @ 24%...
For wrongly/excess availed Input tax then interest @ 24%...
So the internet is 598600 @ 18% this or ( 598600- 489000) as available in portals and @ 18% or in Dec 17 (598600 - 489000) in Jan 18 (598600- available credit in portal) which manner is applicable
On output 598600-610000 which comes to negative so no interest
were as you took ITC in Feb 19 which is not permissable on that 610000+610000*24% need to be reversed
were as you took ITC in Feb 19 which is not permissable on that 610000+610000*24% need to be reversed
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