Question ID : 38170

INTEREST U/S 50 OF CGST ACT

Dear Sir, One of our clients submit gstr 3B & 1 also by filling late fee.He files his returns late due to non receipt of purchase bills ,ledgers etc. Some Superintendent of Central Tax sent a mail that interest @ 18% will be charged due to non payment of tax in time. It is to be noted that client is having liability of CGST & SGST and used to set off against IGST liability due to enough balance in his IGST ITC a/c. Query : Is the contention of that officer correct ?? Pl guide us. Thanks in advance & with warm regards, CA Sudip Kumar Mukhopadhyay

Answer ID : 76677

As per judgment of Megha Engineering and Infrastructure Ltd. vs. Commissioner of CGST... If dealer is filing MONTHLY GSTR-3B as belated Return (after 20th of month) then.... Interst playable @18% P.A. Shall be calculated on.... TOTAL OUTPUT TAX Liability ?????? ????? ?? ???? ???? eligible INPUT Tax ?? ????? ???? ??????, ???? purchases ?? GST ???? ???? ??? So please must file GST Returns within Due Date prescribed.

Answer ID : 76678

As per judgment of Telangana and AP High court in case of Megha Engineering and Infrastructure Ltd. vs. Commissioner of CGST If dealer is filing MONTHLY GSTR-3B as belated Return (after 20th of month) then Interest payable @18% P.A. Shall be calculated on TOTAL OUTPUT TAX Liability without setting off eligible ITC, means interest has to be calculated on ITC component also. However GST council has recommended amendment in section 50 but its not made yet. So must file GST Returns within Due Date prescribed.

Answer ID : 76682

They can levy interest on gross liability but you can take plea of latest supreme court judgement whereas the interest on gross liability is stayed upto sep

Answer ID : 76693

I am of the view that interest can be charged only on the actual tax payable and law in this connection is well settled. So courts can mould relief to you

Answer ID : 76708

Dear Sudip There is lots of confusion going on. As per the Act the Officer is correct as of now . So please make the compliance

Answer ID : 76715

normally, interest should be charged only on the gst payable after set off of itc. but the telengana high court has held interest is payable on the gross tax payable. delhi high court has admitted a writ challenging a similar demand.

Answer ID : 76799

interest is payable for delayed payment of tax. According to the Dept. even if you have sufficient IPT to meet the tax liability, only when the GSTR3B is filed, the IPT gets set off against the OPT. there fore in case of delayed filing of return, interest is payable on the gross OPT. the Telengana High Court has upheald this view. The Delhi High Court has admitted a writ challenging this levy. Pl wait and see the furtyher clarification/ judgement/ notification on this

---