Interest U/s 59 of the GST Act

This discussion clarifies interest liability under Section 50 of the GST Act for late filing of GSTR 3B. Even if you have sufficient Input Tax Credit (ITC), interest may still be applicable on the net cash tax liability. An amendment, though not yet notified, aims to make interest applicable only on tax paid in cash retrospectively from July 1, 2017. It is advised to discharge interest on the net liability after ITC set-off, which is typically 18%.