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Interest on Late payment of GST

18 November 2020

this case is relevant to Fy18-19.

Say for Jul'2018, I've paid the amount of tax due for that month before 20th Aug(i.e, due date for July) and the gstr 3b has been filed on 30th.

I've received a notice asking me to pay interest from 20th to 30th? Is it justified?

Do I have to pay the interest for that 10 days though I've paid tax within due date?

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3 Replies

Shivam RC (Student) (23683 Points)
Replied 18 November 2020

Yes Sir the Department's Interest Notice is correct...

Even if you manage to pay the taxes within the due date of filing Return / depositing taxes, but file your GSTR-3B post deadline of filing the Return, then both Interest @ 18% p.a. along with Late Fees would be applicable. So you need to pay the Interest...

MY Indians Tv (292 Points)
Replied 18 November 2020

Thanks for responding, I've a doubt here. what is the due date of payment for tax in general?

Shivam RC (Student) (23683 Points)
Replied 18 November 2020

The due date of payment of tax and filing the GST Return in general is 20th of the following month ( 22nd / 24nd incase of Small Taxpayers having place of business in the Category I or Category II States ). The tax can be paid / deposited earlier but the GST Return should be "filed" within the due date.

Note that the GST Return shall be treated as a "VALID RETURN" only when the due tax has been deposited successfully and the Return has been filed.