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

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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2 Replies

JATINDER KUMAR (Accountant) (3662 Points)
Replied 14 November 2020

You can use ITC for payment of any missing output liability

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Ranga raj (still studying) (122 Points)
Replied 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.