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Is interest payable in ITC mismatch

02 September 2021

If any RTP has ITC mismatch in GSTR-3B vs GSTR-2A and after detection by dept pays the excess ITC taken by debiting his credit ledger, is he liable to pay interest on that as he has not paid the dues in cash.

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3 Replies

Rajendra Prasad (Employee Private) (1833 Points)
Replied 02 September 2021

Yes, has to pay Interest.

Pawan Mishra (8 Points)
Replied 02 September 2021

Interest is payable on net liability since he paid the amount through credit ledger and did not paid any amount in cash.so he is not liable to pay interest

Rajendra Prasad (Employee Private) (1833 Points)
Replied 02 September 2021

In my knowledge payment of interest on cash portion shall be only on the liability arises on account of return furnished after the due date in accordance with the provisions of section 39.