interest on tax liabilty set off from the credit ledger, Goods and Services Tax - GST

[AMIT BATHAM]

Dear all my learned colleagues, I would like to hear your opinions on the following matter regarding interest liability: an outward supply that should be reported in both GSTR-3B and GSTR-1, but was accidentally left to be reported in GSTR-3B in the year 2017-2018, resulting in a shortfall in tax paid, will interest be owed on that liability if it is set off from the credit ledger? Section 50 stipulates that interest is payable on supplies made during the tax period and reported in the return for that period and return means accordance with the provision of Sec. 39 means GSTR-3B, interest shall be payable on that portion of the tax which is paid by debiting the cash ledger.

Posts / Replies

[Padmanathan Kollengode]

Yes. prima face interest will be applicable on the entire tax paid which is being paid belatedly. Since the supply was not reported in GSTR-3B for the respective tax period in which the supply was made, it is not covered under proviso to section 50.

[Padmanathan Kollengode]

Also see Issue Id: - 118832. The legal provisions, compensatory nature of interest etc has been discussed in this post by experts.

[AMIT BATHAM]

Dear Padmanathan Kollengode Sir Thank you sir