Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Regarding Interest payment

Rajiv (Senior Accounts Officer) (1548 Points)

27 December 2018

Whether interest(section 50) for late payment of tax will be computed on gross liability (i.e. before adjusting ITC) or net liability (i.e. after adjusting ITC)

Reply
Follow
Share

8 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14581 Points)
Replied 27 December 2018

In the 31 st GST councile meet Amendment of section 50 of the CGST act 2017 interest liability is to be charged only on the Net Tax liability and not on gross amount , I think same is not yet notifyed , please confirm .

Upgrade to CAclubindia Pro. Subscribe Now!

Rajiv (Senior Accounts Officer) (1548 Points)
Replied 27 December 2018

it's not notified but in present what is situation???

pritesh (CA Final student) (7101 Points)
Replied 27 December 2018

In present they are sending notice by calculating on gross liability

Sumit Sarswat (Student) (3154 Points)
Replied 28 December 2018

at present it is calculated on gross liability

Rajiv (Senior Accounts Officer) (1548 Points)
Replied 28 December 2018

but this is wrong na than what is the means of itc why we will purchase through ITC. if we not claim it

Upgrade to CAclubindia Pro. Subscribe Now!

RAJA P M ("Do the Right Thing...!!!") (127984 Points)
Replied 28 December 2018

No... Interest calculate on net liability of outstanding figures which after set off Your ITC...

Outward (-) ITC = Payable Liability. Interest on payable liability...

1 Like

Rajiv (Senior Accounts Officer) (1548 Points)
Replied 28 December 2018

BUT SIT IF NET LIABLITY . THAN WHY GOVERNMENT NEED CLEARIFY THE SECTION 50 IN LETEST GST MEETING

RAJA P M ("Do the Right Thing...!!!") (127984 Points)
Replied 28 December 2018

Bcoz, Dept serve notice in Full of Tax values in the supply... And Taxpayers not understanding the notice...

Yes... dept can raise only based on GSTR 1 return. He don't have GSTR 2 return. So, They issued on Outward supplies...

But, Our duty will give details of ITC and it's set off details. After given the details AO can accept Your details then pay balance with interest...

1 Like