GST interest calculation

22 February 2019

For late filing of GSTR - 3B on which amount we have to calculate interest?
Whether on total output GST or net payable after setoff of Input?

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11 Replies

CA.Pankaj Rawat (Chartered Accountant) (1381 Points)
Replied 22 February 2019

Interest is paid on net balance after sett off of input gst

Megha Bhat (38 Points)
Replied 22 February 2019

I have only sgst net laibility but the portal is taking interest on both if I put interest on sgstwhat is solution for that?

CA.Pankaj Rawat (Chartered Accountant) (1381 Points)
Replied 22 February 2019

no,interest is payable only on net balance of SGST

Megha Bhat (38 Points)
Replied 22 February 2019

But if I enter sgst interest portal will automatically takes cgst interest also

CA.Pankaj Rawat (Chartered Accountant) (1381 Points)
Replied 22 February 2019

But how,can you share the details of input and output?

Megha Bhat (38 Points)
Replied 22 February 2019

Output cgst 199000
Ouput sgst 199000
Input sgst 17800
Input cgst 17800
Input igst 241000
Net laibility is sgst 121400

CA.Pankaj Rawat (Chartered Accountant) (1381 Points)
Replied 22 February 2019

Interest will be paid on Rs.121400 i.e SGST

Megha Bhat (38 Points)
Replied 22 February 2019

Yes but if I put interest amount in sgst column in cgst it takes automatically

Baldev Prajapati (264 Points)
Replied 22 February 2019

but section 50 of CGST act is not amended so imterest will be paid on gross value.

M.M Sachora (Tax Professional & Advisor) (1421 Points)
Replied 26 February 2019

Practically as of now there is no interest on Tax but in GST Law interest @ 18% on Net Tax after adjustment of Input Credit..

Jatin (Accountant) (3479 Points)
Replied 17 March 2019

You need to pay interest on gross liability as per GST rules

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