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Interest on late filing of GSTR3B

Arunachalam (Proprietor) (186 Points)

02 September 2020

Is it true that we do not need to pay interest on late filing of GSTR3B from July 2017? Notification No. 63/2020 - Central Tax

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 02 September 2020

*Interest in GST to be levied on net liability notified! wef 01/09/2020 vide Notification No. 63/2020 Central Tax*
100. In section 50 of the Central Goods and Services Tax Act, in sub-section (1), the following proviso shall be inserted, namely:––
“Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.”.

So, From 01.09.2020 we have to pay interest on net liability after setoff of ITC (i.e Paid in cash,if any), not total output tax liability.