Interest on late filing of GSTR 3B return
This query is : Resolved
20 December 2019
For financial year 2019-20 --
April, may, june months gstr3b is filed on august 20
interest is not paid till date, I want to pay interest on January month return
Is interest is calculated from april to august???? or april to january ???
What are the consequences arrise for this case and how to handle it................
April, may, june months gstr3b is filed on august 20
interest is not paid till date, I want to pay interest on January month return
Is interest is calculated from april to august???? or april to january ???
What are the consequences arrise for this case and how to handle it................
23 December 2019
Interest will be calculated on tax payable from the due date of concerning 3B till the date of actual filing of 3B.
31 December 2019
Dear sir,
Thank you very much for your valuable reply...
May i know any provisions is available in support of the above sentence, because our client is willingly doing that, not to pay any interest on the date of filing of GTSR-3B (now) and he wants to pay, if any amount after receiving notice from GST dept regarding this issue.
Thank you very much for your valuable reply...
May i know any provisions is available in support of the above sentence, because our client is willingly doing that, not to pay any interest on the date of filing of GTSR-3B (now) and he wants to pay, if any amount after receiving notice from GST dept regarding this issue.
01 August 2024
The provisions for calculating and paying interest on delayed payment of GST are outlined in the **Goods and Services Tax (GST) laws**. Specifically, the interest on delayed payment of GST is governed by **Section 50** of the Central Goods and Services Tax (CGST) Act, 2017, and similar provisions under the State GST Acts.
### **Relevant Provisions:**
1. **Section 50 of the CGST Act, 2017**:
- **Interest on Late Payment:** Interest is charged on the delayed payment of GST from the due date of payment till the date of actual payment.
- **Rate of Interest:** The interest rate is 18% per annum (as per CGST Rule 88B) on the outstanding amount.
**Key Provisions:**
- **Section 50(1):** "Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder and fails to pay the tax by the due date shall be liable to pay interest on the amount of tax not paid at such rate, not exceeding eighteen percent, as may be notified by the Government."
- **Interest Calculation:** The interest is calculated from the due date of the payment till the date of actual payment.
### **Detailed Explanation:**
- **Due Date for GST Payment:** GST should be paid by the due date for the respective period. For monthly filers, this is generally the 20th of the subsequent month.
- **Interest Accrual:** Interest will accrue from the day after the due date until the date of actual payment. The GST portal calculates the interest amount due based on the overdue period.
- **Filing of GSTR-3B:** Filing the GSTR-3B does not absolve the liability of interest for late payment. Interest needs to be paid for the period from the due date of payment till the actual date of payment.
### **Practical Approach:**
1. **Interest Payment:** Interest on delayed payment of GST should be calculated from the due date of the payment (which is the date when the GST was due) until the date of actual payment.
2. **Filing and Payment Timing:** Filing GSTR-3B without paying the interest does not relieve the liability. Interest should be paid immediately upon realization of the delay or receipt of a notice.
3. **Compliance:** Ensure compliance with GST laws by paying interest as per the provisions. Delaying interest payment can result in further penalties or legal complications.
4. **Tax Notices:** If a notice is received from the GST department regarding unpaid interest, it should be addressed promptly to avoid additional penalties.
### **Summary:**
- **Interest Calculation:** Interest is calculated from the due date of payment till the date of actual payment.
- **Provision Reference:** Section 50 of the CGST Act governs the interest on delayed payment of GST.
- **Compliance Requirement:** It is essential to pay interest promptly to avoid further penalties or legal issues.
If your client intends to delay the payment of interest until receiving a notice, it is important to inform them that this approach might lead to additional penalties or complications. It is advisable to consult with a GST practitioner or legal advisor for accurate guidance and to ensure compliance with GST regulations.
### **Relevant Provisions:**
1. **Section 50 of the CGST Act, 2017**:
- **Interest on Late Payment:** Interest is charged on the delayed payment of GST from the due date of payment till the date of actual payment.
- **Rate of Interest:** The interest rate is 18% per annum (as per CGST Rule 88B) on the outstanding amount.
**Key Provisions:**
- **Section 50(1):** "Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder and fails to pay the tax by the due date shall be liable to pay interest on the amount of tax not paid at such rate, not exceeding eighteen percent, as may be notified by the Government."
- **Interest Calculation:** The interest is calculated from the due date of the payment till the date of actual payment.
### **Detailed Explanation:**
- **Due Date for GST Payment:** GST should be paid by the due date for the respective period. For monthly filers, this is generally the 20th of the subsequent month.
- **Interest Accrual:** Interest will accrue from the day after the due date until the date of actual payment. The GST portal calculates the interest amount due based on the overdue period.
- **Filing of GSTR-3B:** Filing the GSTR-3B does not absolve the liability of interest for late payment. Interest needs to be paid for the period from the due date of payment till the actual date of payment.
### **Practical Approach:**
1. **Interest Payment:** Interest on delayed payment of GST should be calculated from the due date of the payment (which is the date when the GST was due) until the date of actual payment.
2. **Filing and Payment Timing:** Filing GSTR-3B without paying the interest does not relieve the liability. Interest should be paid immediately upon realization of the delay or receipt of a notice.
3. **Compliance:** Ensure compliance with GST laws by paying interest as per the provisions. Delaying interest payment can result in further penalties or legal complications.
4. **Tax Notices:** If a notice is received from the GST department regarding unpaid interest, it should be addressed promptly to avoid additional penalties.
### **Summary:**
- **Interest Calculation:** Interest is calculated from the due date of payment till the date of actual payment.
- **Provision Reference:** Section 50 of the CGST Act governs the interest on delayed payment of GST.
- **Compliance Requirement:** It is essential to pay interest promptly to avoid further penalties or legal issues.
If your client intends to delay the payment of interest until receiving a notice, it is important to inform them that this approach might lead to additional penalties or complications. It is advisable to consult with a GST practitioner or legal advisor for accurate guidance and to ensure compliance with GST regulations.
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