INTEREST ON LATE PAYMENT OF GST

[Preeti Sharma]

Hello Experts,

We paid GST For Oct Month on Nov 22 with late fee but did not pay interest on late payment. What are the consequences of non payment of interest on late payment of GST. Can we pay now that interest? If we pay now, then it shall be levied @ 18% p.a. for only 2 days? or more than that as there is a delay in paying Interest.

[KASTURI SETHI]

You can pay interest now. It has to be paid may be even one day.

[Preeti Sharma]

We paid ₹ 83170/- tax for the m/o of Oct on Nov 22. Now after 1 month, if we pay Interest then it shall be levied only for 2 days. Right?

Intt = 83170*18%*2/365= ₹ 82/-

Am I right?

[CSSANJAY MALHOTRA]

Interest amount applicable for 2 days only and the same shall be debited and paid off in subsequent month GSTR-3B return.

[Preeti Sharma]

Thanku Experts.

AI Summary

Interest on late GST payment accrues for the full period of delay and can be paid subsequently via the return. Interest on late payment of GST accrues from the due date until the date of actual payment and can be paid subsequently; it must be computed on the unpaid tax for the total days of delay and may be declared and discharged in the following monthly return, specifically to be debited and paid off through the GSTR-3B return.