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Regarding interest amount in gst

Rajiv (Senior Accounts Officer) (1548 Points)

03 October 2018

Sir,

I made a interest payment under gst for late payment for the month of june 2018. I paid 145000 for interest. Sir after payment the interest amount ( 145000) are showing in my cash ledger. Why it is showing in cash ledger. it was our liability so i paid it. But it is showing in Cash Ledger.

Please give your valuable replay in this regards

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11 Replies

Santhosh Raj (14 Points)
Replied 03 October 2018

Electronic cash ledger( ECL) is like an e-wallet. Any GST payment made in cash or through bank reflects in ECL.

Balances in ECL is utilised for payment of GST liability. For utilising the same the liability has to be offset in the GSTR 3B. Only upon offsetting the liability in GSTR 3B, the tax liability is discharged. As long as the liability is not offset in GSTR 3B, the cash balance remains in the ECL.

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Rajiv (Senior Accounts Officer) (1548 Points)
Replied 03 October 2018

it means I made extra payment . so it is showing in Gst portal????

Santhosh Raj (14 Points)
Replied 03 October 2018

It could be either of the following :

1. You have not offset the liability in the GSTR 3B, or
2. You have made payment exceeding the liability and only the excess is reflected in the ECL.

You can download the ECL for the particular period and ensure the same.
All the deposits and the utilisation of tax is reflected in the ECL.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 03 October 2018

Dear Rajive
unless it is setoff it will stand in Cash Leger , So Show the Interest Liability of 1.45 lac in Table 5, under Interest in you GSTR 3B & set off the same

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Rajiv (Senior Accounts Officer) (1548 Points)
Replied 04 October 2018

You are right sir i did not fill Interest amount in Table 5.1 in Interest coloumn.Sir i tick in box ( Please select the check box if you wish to declare any Interest liabilities. Please note Interest amounts declared here under respective heads need to be paid in cash in addition to tax liabilities for the month. GSTR 3B can be filed only after complete payment of all liabilities.) but did not filled interest .

what i do in this case sir ?????

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 04 October 2018

Can be done in your next 3b , fill the Interest column in your sept 18 3b & setoff the same

Rajiv (Senior Accounts Officer) (1548 Points)
Replied 04 October 2018

But sir if I will not do so then what happen. because my Gst return already fill for month of June 18

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 04 October 2018

IT WILL ALWAYS STAND IN YOUR CASH LEDGER

H.R. Sreepada Bhagi (Practicing Cost Accountant) (50 Points)
Replied 04 October 2018

Whatever remittance is made in cash, it gets accumulated in Electronic Cash Ledger. All the balances in Electronic Credit Ledger and Electronic Cash Ledger can be utilised by declaring the same in Form GSTR-3B. You would not have shown the amount in Form GSTR - 3B. it's n ot only remittance, but its utilisation by declaring the liability is necessary to reduce the amount remitted towards any tax or interest liability. However, earlier, in some cases, interest was being automatically getting calcualted and appeared in Form GSTR-3B.

If it is not declared in Form GSTR-3B in the relevant month, decalre the interest liability in the return to be filed next.

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Rajiv (Senior Accounts Officer) (1548 Points)
Replied 04 October 2018

if I will paid interest in next month return 3b then I will utilize this from my cash ledger . because it is showing in my Interest column in Cash ledger.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 05 October 2018

Rajive ji
cash ledger is like client cash balance so your liability will be seroff only when you declare in form 3b get it setof from cash ledger

Simply deposit in cash ledger will not be considered as interest being deposited , hqve to setoff