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Interest on tax paid in drc 03 via ITC

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HARSHA BHAT

52 Points Posted on 21 July 2023

whether interest is applicable if tax paid short in GSTR 3b( in GSTR 1 properly declared) later paid via drc 03 using eligible ITC for the said period ?

Replies (3)

Quick Summary

This discussion explores whether interest is applicable when tax short-paid in GSTR-3B is later settled via DRC-03 using eligible Input Tax Credit (ITC). While one view suggests no interest applies if ITC is readily available, the other perspective from a proper officer indicates interest is always applicable when using DRC-03, regardless of payment method. The user is seeking legal provisions to support the contention that interest should not be charged when ITC is used for settlement.

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 21 July 2023

In which month and year, you paid short tax in GSTR3B?.

Arun Kumar Singh

GST Advocate

13166 Points Posted on 27 July 2023

Interest will not be applicable in case of tax paid through ITC always available in credit ledger.

HARSHA BHAT

52 Points Posted on 27 July 2023

Thank you for your reply but the proper officer is with a view that the interest applicable when we pay tax via DRC 03 irrespective of whether it is through cash or credit. may I request you to kindly provide any legal provisions supporting your contention.