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Interest relating to payment in DRC 03

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kishan bhati

15 Points Posted on 04 February 2020

Sir I have to make payment through DRC 03 for wrong availment of ITC For F.Y. 2017-18 of about 7308 in CGST and same in SGST and Balance in Cash ledger of CGST is 100000 and that of in SGST 3208 so could you please describe the amount payable on behalf of interest for this 2.5 year on what rate and what amount ?

Replies (6)

Quick Summary

This discussion clarifies how to calculate interest when making a payment via DRC-03 for wrongly availed Input Tax Credit (ITC) for the financial year 2017-18. The calculation involves determining the interest on both CGST and SGST amounts based on the prevailing rate (24% mentioned) and the number of delayed days. It's confirmed that the interest is calculated on the full amount of wrongly availed ITC, irrespective of balances available in the cash or credit ledgers.

Roshni

Studwnt

1141 Points Posted on 04 February 2020

24% of amount

kishan bhati

15 Points Posted on 04 February 2020

Thanks but What would be the amount could you please describe ?

RAJA P M

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

128157 Points Posted on 04 February 2020

Calculate interest as following way

Interest on CGST Rs 7308 = 7308 * 24% / 365 * no of delayed days...

Also the same way to SGST...

kishan bhati

15 Points Posted on 05 February 2020

I am in doubt whether it would be on 7308 or on 7308-7308 as it is already available in cash ledger in CGST and in SGST @ 7308-3208 as it is available in credit ledger

RAJA P M

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

128157 Points Posted on 05 February 2020

@ Mr Kishan.,

Available balance in Cash & Credit ledger is not a matter...

Payable liability as per Your set off via adjust. Calculate interest as per above formula and pay/set off required balances...