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Interest on debit note gst amount

sanjeev goski (AM Accounts & Finance) (125 Points)

20 November 2019

Dear Sir,

Do we need to pay Interest on debit note gst amount cause we are paying gst lately?. Pls give section or rule reference.

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13 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 20 November 2019

As per Section 50 of ,CGST yes interest is applicable @ 18% & that to be paid on Gross Liability.

2 Like

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sanjeev goski (AM Accounts & Finance) (125 Points)
Replied 21 November 2019

Mean inv is of apr and debit note raised in dec, then we need to pay interest from apr to dec period on debit note gst amt?.

1 Like

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 21 November 2019

No... No need to pay interest on the debit note amount...

But.,
Your query not cleared. elaborate with more details...

sanjeev goski (AM Accounts & Finance) (125 Points)
Replied 21 November 2019

We are raising debit note with gst in dec for apr month inv due to rate fluctuation. do we need to pay interest on debit note gst amt as debit note relates to apr month inv and paid in dec month?.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 21 November 2019

No need...

You can (also your supplier as credit note) issue the April month related debit note (Credit note by supplier) on or September month in next FY.
So, no need to pay interest for the debit note tax which reverse in ITC.

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sanjeev goski (AM Accounts & Finance) (125 Points)
Replied 21 November 2019

We are supplier and raised debit with gst om customer against apr month inv. do we need to pay interest on debit note gst amt?.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 21 November 2019

Originally posted by : sanjeev goski
	We are supplier and raised debit with gst om customer against apr month inv. do we need to pay interest on debit note gst amt?.

No need...

in case If you amend the Invoice then YES interest will be payable.

2 Like

sanjeev goski (AM Accounts & Finance) (125 Points)
Replied 21 November 2019

Pls give section or rule reference.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 21 November 2019

No more specific rules and section...

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 23 November 2019

Dear Sanjeev

What do you mean by "Rate fluctuation" ...... If it means ie instead of 18% you charged 12% , then you are liable Pay interest .

if ,we read Section 50 of CGST it's clearly states that " Every person who is liable to pay tax in accordance with PROVISION OF THIS ACT but fails to pay "

so you have not paid the tax to Govt as per provision of Act or short paid , hence liable to pay interest @ 18%

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sanjeev goski (AM Accounts & Finance) (125 Points)
Replied 23 November 2019

Rate change is of material. not of gst. ours is auto sector. fg rates changes as per rm prices time to time. hence we hv to raise debit note periodically. it is not know at invoice tome. still need to pay interest on debit note gst amt. sec 50 of cgst says fails to pay tax or part of it.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 23 November 2019

Originally posted by : sanjeev goski
	Rate change is of material. not of gst. ours is auto sector. fg rates changes as per rm prices time to time. hence we hv to raise debit note periodically. it is not know at invoice tome. still need to pay interest on debit note gst amt. sec 50 of cgst says fails to pay tax or part of it.

pay tax or part of it

Based On Tax Invoices and the Periods of returns, Payments, Inputs these all are as per dates/Months....

-->> Otherwise if You will pay interest then It's Your own interests...

-->> GOOD LUCK <<--