Unpaid GST of one month adjusting against ITC of another month.

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404 Points Posted on 14 November 2020
If a registered person fails to pay GST on any bill in GSTR-3B and does not report in GSTR-1 also for some reasons then can he adjust such output tax against ITC of the month in which he has enough ITC or whether he should pay such output tax in cash?
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On 14 November 2020 at 11:01 Report
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Quick Summary
This discussion clarifies how to handle unpaid GST liabilities. Generally, you can use your Input Tax Credit (ITC) to offset output tax. However, if your ITC is insufficient to cover the liability, the remaining amount must be paid in cash. Failing to report a bill in the correct period may incur an 18% interest charge on the GST value if you choose to report it in a subsequent month.

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Accountant
3662 Points Posted on 14 November 2020
You can use ITC for payment of any missing output liability
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On 14 November 2020 at 11:33
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still studying
122 Points Posted on 14 November 2020
Dear sir, The output tax liability of a particular month can be adjusted with ITC, but in case of insufficient ITC the liability must be met payment of cash. Incase you are planning to show the bill in the next month then you should pay an interest at the rate of 18% on the gst value.
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On 14 November 2020 at 20:23

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