My tax liability for a month is Rs. 5000/-. I have filed the return 30 days late and discharge my liability by cash and ITC Rs. 3000 & 2000 respectively. Now my question is Interest for 30days late will be calculated on Rs. 3000 which i have paid through cash or On total Rs. 5000.
Thanks
18 Replies
Dharam
(CA FINAL)
(164 Points)
Replied 04 March 2019
according to section 50(1)
Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent.
Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent.
Sujan Das
(43 Points)
Replied 04 March 2019
@ dharam according to this interest should b levied on whole 5000
Dharam
(CA FINAL)
(164 Points)
Replied 04 March 2019
sujan das ... u have already itc of 2000 availbale , means u have already paid or adjusted 2000/- and remaing gst unpaid is Rs. 3000/-
so interest will b paid on 3000/-
so interest will b paid on 3000/-
Sujan Das
(43 Points)
Replied 04 March 2019
but gst officer says that cash or itc available in the ledger does not mean u have paid that until and unless you paid the same vide filing the 3b return. what can be done now?
pritesh
(CA Final student)
(7101 Points)
Replied 04 March 2019
Interest will be calculated on gross liability i.e 5000
Dharam
(CA FINAL)
(164 Points)
Replied 04 March 2019
in my view interest will b charged on 3000/- only
moreover u can confirm it parctically by paying interest on 3000/-
if interest paid on 3000/- is not sufficient then u won't be able to file return
moreover u can confirm it parctically by paying interest on 3000/-
if interest paid on 3000/- is not sufficient then u won't be able to file return
Sujan Das
(43 Points)
Replied 04 March 2019
this is the problem... interest has to be calculated by user.. and there is no validation by system till date regarding interest. system will accept both...
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 04 March 2019
Yes... I agreed to Mr Dharam.,
@ Sujan Das.,
No more Confusion...
Interest applicable only on "LIABILITY" not on Outward Taxes. Bcoz, We already paid some amount (2k) as ITC...
So, You can just calculate interest on Outstanding Liability...
As per Your query Rs 3k
= 3000*18%/365*30
= 44.38 only in the respective heads...
@ Sujan Das.,
No more Confusion...
Interest applicable only on "LIABILITY" not on Outward Taxes. Bcoz, We already paid some amount (2k) as ITC...
So, You can just calculate interest on Outstanding Liability...
As per Your query Rs 3k
= 3000*18%/365*30
= 44.38 only in the respective heads...
Padmanathan Kv
(2127 Points)
Replied 04 March 2019
On 5000
In case of delayed GST return filing, a taxpayer is liable to pay interest not only on the outstanding tax liability but also on the input tax credit (ITC) balance in the electronic credit ledger maintained on the GST Network portal, a Hyderabad GST commissionerate order said.
Standing Order No1 dated 4/2/2019
In case of delayed GST return filing, a taxpayer is liable to pay interest not only on the outstanding tax liability but also on the input tax credit (ITC) balance in the electronic credit ledger maintained on the GST Network portal, a Hyderabad GST commissionerate order said.
Standing Order No1 dated 4/2/2019
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 04 March 2019
The GST officials ask the details based on Outward supplies which is filed by We in the GSTR 1 return. Also it's their duty...
But, Our duty is different from Officials. Bcoz they can't get Input details which is had our hand as Tax Invoices...
We only declare our set off details to Officials...
Also I done the same...
In any of the previous ID tax it's the same way. But, We can give our details to Officials...
But, Our duty is different from Officials. Bcoz they can't get Input details which is had our hand as Tax Invoices...
We only declare our set off details to Officials...
Also I done the same...
In any of the previous ID tax it's the same way. But, We can give our details to Officials...
peer aajiz
(STUDENT)
(51 Points)
Replied 04 March 2019
ITC availment is not ITC utilization, when u utilize ITC then ur liability get decreased, & itc utilization is to be done in gstr 3b hence Interest is to be paid on 5000.
Hope the answer is ur question
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