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Interest related issue

07 May 2018

if we file return but sales detail undervalued so when we adjust in subsequent so there will be shown Interest calculation if yes what will be rate and what will be periods ???

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13 Replies

john legend (376 Points)
Replied 07 May 2018

24 % interest coz u undervalued sales and shown less output tax liability

period: date on which payment was due to date on which payment is made

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Faheem Akram (802 Points)
Replied 07 May 2018

I think it will be 18%

john legend (376 Points)
Replied 07 May 2018

18% will be if u have shown sales and proper tax but not paid to govt on time

but if u have not shown correct sales or lower sales ie lower output liabilty therefore 24%

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RAJA P M ("Do the Right Thing...!!!") (128068 Points)
Replied 07 May 2018

What is the exact meaning of "UNDERVALUED"...?
Is negative value or positive value...???

Faheem Akram (802 Points)
Replied 07 May 2018

suppose I have actual sale 100000 but we show in GSTR 3B 50000

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john legend (376 Points)
Replied 07 May 2018

but why are doing this practice faheem?

RAJA P M ("Do the Right Thing...!!!") (128068 Points)
Replied 07 May 2018

Dear Faheem... First of You / We think No more restriction based on GSTR 3B... But, If you have excess ITC in the meantime no need to pay Interest... If not and you fall excess liability and payable then interest applicable @ 18%

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john legend (376 Points)
Replied 07 May 2018

read this

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., as may be notified by the Government on the recommendations of the Council.

[2] The interest under sub-section [1] shall be calculated, in such manner as may be prescribed, from the day succeeding the day on which such tax was due to be paid.

[3] A taxable person who makes an undue or excess claim of input tax credit under sub-section [10] of Section 42 or undue or excess reduction in output tax liability under sub-section [10] of Section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four per cent., as may be notified by the Government on the recommendations of the Council

and take decision

RAJA P M ("Do the Right Thing...!!!") (128068 Points)
Replied 07 May 2018

No need to worry about GSTR 3B... That's just a interim return.... File correct way in GSTR 1...

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john legend (376 Points)
Replied 07 May 2018

but there is one thing to remember that gstr 1 is filed after gstr 3b and at the end of final return reconcialiation u will have to pay interest ultimately

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RAJA P M ("Do the Right Thing...!!!") (128068 Points)
Replied 07 May 2018

As per my 2nd reply., If he have excess ITC (Input above 1lakh) then no need to pay Interest in anywhere of the returns like next GSTR 3B or Annual return... If don't have excess ITC (less than 1lakh) then Interest @ 18% will be Payable as per his actual transactions and Better to pay in next GSTR 3B...

john legend (376 Points)
Replied 07 May 2018

bro read section properly becoz it is not only written EXCESS ITC but ALSO written EXCESS REDUCTION IN OUTPUT TAX LIABILITY

RAJA P M ("Do the Right Thing...!!!") (128068 Points)
Replied 07 May 2018

Ha ha ha ha..... Thank You Thank You Thank You for the advice about "read section properly".... All o Thanks Once again for "it is not only written"..... But, Don't be use the word of "read section properly"..... Also don't be reply the same way to any other CCI members. Bcoz, They not like the same and don't give Thank... Any way Thank You once again. If you read properly then Keep it up Yourself and give to explanation / solution to query.... ↔

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