03 June 2021
In my one of client case there is accountant has paid gst liability for the period of Feb-2018 to May-2019 within due date but cannot file gstr 3b and 1 returns for that period and as on 30-09-2020 accountant has file gstr 3b returns for that period and after that my client receive demand notice for interest liability for above delay. so my query is that interest is levied on net liability as per last year notification. so whether cash ledger balance is deducted from gross liability like ITC is deducted from gross liability.
03 June 2021
Net liability means after deducting payment from ITC. That means interest will be chargeable on payment made by cash ledger. Payment is only made when the amount is deducted from your cash ledger. Therefore any balance in cash ledger will not be considered payment until it is deducted from there. So in your case if GSTR-3B was not submitted on time interest will be chargeable on cash portion.
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