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Will interest still to b paid if i have excess in cash ledger

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santwana gautam

41 Points Posted on 06 February 2023

I am contractor and submitted my GSTR 1 and 3B late wrt 2018-19.I had excess Cash deposited in cash ledger that time period.Tax authorities denying benefit of excess cash in cash ledger and raised demand for Interest

Replies (3)

Quick Summary

If you've filed your GSTR 1 and 3B late and had an excess in your cash ledger at the time, you may still be liable for interest. The tax authorities argue that simply having funds in your cash ledger doesn't automatically mean they've been paid to the government; they need to be explicitly transferred or utilised. You might need to file a DRC-03 or PMT-08 to properly set off the amount against interest due, even if your ledger shows a surplus.

Sneha Latha

Senior Assistant

218 Points Posted on 06 February 2023

If interest is already discharged at the time of filing 2018-19 GSTR-3B, interest didn't be discharged again.

The amount being in cash ledger doesn't mean that, the same is deposited to government. The same has to be transferred to government at the time of filing monthly returns or by filing DRC-03. And

In Cash ledger whether the amount is in tax head or interest head?

If the amount of Cash is in Interest, the same can be discharged to government through DRC-03.

If the same is in tax head the same can be transfered to interest by filing PMT-08 and discharged through DRC-03.