Dear sir, I have paid 15L CGST+SGST on 10.02.2018 by direct challan.
but GSTR1 and 3B filed on 20.10.2020..
Then Dept seeking interest from 2018...
whether the dept contention is right?
11 Replies
kiran
(accounts manager)
(262 Points)
Replied 19 November 2020
Simply crediting amount to cash ledger does not mean liability paid unless setting off the ledgers. hence interest need to be paid.
gangadhar kalangiri
(15 Points)
Replied 19 November 2020
Department side is right, why because, even though you paid the taxes, that are in your cash ledger only, when filing of your GSTR3b, the process is completed.
Shivam RC
(Student)
(23683 Points)
Replied 19 November 2020
Yes the Department's contention regarding the demand of Interest from 2018 is absolutely right. You have just deposited the taxes to the Bank A/c which gets credited to your E-Cash ledger, which doesn't mean that you have paid the taxes to the Government. A GST Return is treated as a VALID RETURN only when it has been "filed."
JATINDER KUMAR
(Accountant)
(3662 Points)
Replied 19 November 2020
Yes
You are liable to pay interest
You are liable to pay interest
Vijayprakash P
(1313 Points)
Replied 19 November 2020
The contention of GST department is valid. Hence you are liable to pay interest.
guna
(Student CMA)
(74 Points)
Replied 20 November 2020
Thanks for reply. Kindly give me the circular/Notification number regarding this issue if any.
U/s 50 not saying that, Cash ledger balance should be set off with said return .
guna
(Student CMA)
(74 Points)
Replied 20 November 2020
Dear sir, One of contractor terminated from his contract and not paid GST in the year 2017-18. But we have taken the GST Input for the same.
Due to this, while reconciling the GSTR-2A with 3B, CGST Dept forced to reverse the credit taken by us for invoices given by said contractor.
In this case we have paid the GST Amount by using our contractor GST Number and said to contractor to setoff the liability by filing retruns. But the contractor not filed till now and his registration also canceled by Dept.
Later, GST dept revoked his registration and filed his returns But Dept seeking interest from 2018.
Whether the dept contention is right?
How can we manage this issue?
This is the overall issue presenting before you.
guna
(Student CMA)
(74 Points)
Replied 20 November 2020
Thanks for reply. Kindly give me the circular/Notification number regarding this issue if any. U/s 50 not saying that, Cash ledger balance should be set off with said return .
Read more at: https://www.caclubindia.com/forum/interest-u-s-50-564451.asp?offset=1
Bullseye Advisors
(GST consultants)
(89 Points)
Replied 26 November 2020
Please refer ruling in M/s. Megha Engineering & Infrastructures Ltd. Vs Commissioner of Central Tax (
Regarding contractor payment, balance in cash ledger can be claimed as refund. Please apply for revocation of cancellation of registration, obtain refund of tax paid, if possible.
Bullseye Advisors
(GST consultants)
(89 Points)
Replied 26 November 2020
Please refer ruling in M/s. Megha Engineering & Infrastructures Ltd. Vs Commissioner of Central Tax (
Regarding contractor payment, balance in cash ledger can be claimed as refund. Please apply for revocation of cancellation of registration, obtain refund of tax paid, if possible.
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