Interest on underpaid GST from May 2019 in GSTR-3B for March 2020

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Simple

Java Consultant

104 Points Joined July 2009

Hello GST Experts,

I had a quick question about interest on late payment of GST for FY2019-20.

But before asking this question here, I already "searched" the forum and saw earlier replies too. But I was still doubtful about whether there was interest waiver or any other aspect that did not match with earlier Q&A. That's why I am asking this question now.

Thanks in advance to the experts for your patience and guidance!

While filing GSTR-3B of May 2019, the turnover/sales was declared correctly but due to an Excel formula mistake the CGST and SGST amount was not calculated correctly and I underpaid for example 1,000 CGST and 1,000 SGST. While filing quarterly GSTR-1 for Q1 (April to June 2019) the turnover and tax payable was calculated correctly. But this shortfall in GST Tax payment was only discovered now while doing accounting.

I was told that I can pay the 1,000 CGST and 1,000 SGST in GSTR-3B for March 2020 over and above the actual March GST. This will take care of the underpaid GST of May 2019. The payment will be done by offset Input Credit balance accumulated from a long time in my GST Ledger account (this Input Credit is much more than the Rs.1,000 CGST + Rs.1,000 SGST from before May 2019).

Question: But do I need to pay interest on 1,000 CGST and 1,000 SGST from 20th June 2019 to lets say 20th April 2020 by which date I will file the GSTR-3B of March 2020? If yes, at what rate and how many days in this specific case with the amounts specified?

Your guidance / advice will be appreciated.

Thanks!

Replies (4)

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Hi Mr Simple.,

I understand Your query and it's requirements...
But, query's details not cleared... How..?

- Are You excess claim ITC...? or
- Are You shown lesser amount of sales & output tax...?
- Can You elaborate your query with correct details of May-19 with Sales and purchase taxes...?

Simple

Java Consultant

104 Points Joined July 2009

Hello Mr. Raja,

Thanks for taking the time to review my query.

Clarifications to your questions:

"Are You excess claim ITC...?" <-- No, not excess claim of ITC. But have enough accumulated ITC in my GST Ledger from 2018 and so could have settled the underpaid CGST and SGST way earlier.

"Are You shown lesser amount of sales & output tax...?" <-- sales amount shown correctly, but the 9% CGST and 9% SGST not added up correctly due to formula error in my Excel and hence Rs.1,000 CGST and Rs.1,000 SGST that should have been paid in May 2019 was not paid. Now I am going to add that CGST and SGST amounts in March 2020 GSTR-3B and pay it / adjust against ITC. Question is about whether interest is payable and at what rate and what period to calculate it for?

- Can You elaborate your query with correct details of May-19 with Sales and purchase taxes...? <-- May 2019 Sales amount correctly totaled to Rs.50,000. 9% CGST should have been Rs.4,500 and 9% SGST should have been Rs.4,500. But when filling up GSTR-3B of May 2019, I made a mistake and declared Rs.3,500 CGST and Rs.3,500 SGST and paid the same by adjusting against my ledger balance. I discovered my mistake only now and found out I underpaid Rs.1,000 CGST and Rs.1,000 SGST in May 2019. So now when filing March 2020 GSTR-3B this month, I am going to pay Rs.1,000 extra for CGST and Rs.1,000 extra for SGST. But question is should I be paying interest on that?

Please guide!

Thanks for your patience.