09 March 2022
Hon'ble Members, I had filed GSTR 3B for Jan 22 disclosing liability for Jan 22 as well as 1 bill of Dec21, i had mentioned it in new feature i.e voluntary GST bifurcation month wise but, I have query since interest on late payment of GST is applicable on net amount paid in cash and not gross liability. I already have credit ledger balance which is more than the liability therefore interest should not be charge in my case right? Please suggest a solution.
09 March 2022
As you are reporting Dec-21 month invoice in your Jan-22 return, you are liable to deposit the interest on late payment of GST irrespective of set off this payment with cash or input credit.
09 March 2022
Sir, I just wanted to clarify isn't interest on net cash payment only, if my accumulated ITC balance for the year is more than liability to be paid then also i have to pay interest?
09 March 2022
It is on net cash liability when you would have declared Dec-21 month invoices in the same month itself but return is filed late. As in your case because you are declaring previous month invoice in subsequent month, you need to pay interest. Please refer section 100 of the finance(No 2) act, 2019
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