Interest related

[Ramesh Prajapati]

Sir,

A dealer has submitted gstr 3b of July 17 with following detalis.

Output gst 100000

Itc 80000

Net gst paid 20000

Later he rectified above data in December 17 gstr 3b as under

Output tax 250000

Itc 150000 (

Net gst 100000(itc adjusted from credit ledger)

My question is on which amount interest would be payable

250000, 100000 or other?

My dout.. As dealer has adjusted itc in December, he would liable to pay interest on entire amount of output i. E 250000 from August to December

Pl guide

[SHIVKUMAR SHARMA]

Interest is to be payable on ₹ 150000/-For the Period From August to December 2017.

250000-100000(80000+20000)

[Yash Jain]

Statement Showing Computation Of Interest on Short Tax Liability

Particulars

Original

Revised

Due Date / Date of Payment

1-Sep-17

20-Oct-18

Gross GST Liability

100,000.00

250,000.00

ITC

80,000.00

80,000.00

Net Tax Liability

20,000.00

170,000.00

Incremental Liability (Original - Revised)

150,000.00

Duration

414.00

Interest @ 18% PA

30,624.66

Notes :

As the Due Date for Filing the Returns for the Month of Aug-2017 is 20-09-2017, but as the returns was not filed hence Interest will be calculated from 01.09.2017

As per Sec 16(2) of the CGST Act, ITC Will be admissible provided the same is taken in the Return "for the month" in which it is filed

As the Additional ITC (Rs.70000/-) is not claimed in the Returns for the Month of August, same will not be considered as ITC in August.

However As per Sec 18(5), ITC Will not be available in case Invoice is more than 1 year Old. Assuming that you have not filed Return for Aug-2018, you can take input

However if the Returns for Aug-2018 is filed without considering the Input then you will not be eligible for the ITC Of ₹ 70000/-

[SHIVKUMAR SHARMA]

Shri Yash Jain Ji

The Querist have made the Payment of Tax in Dec.2017 not In Dec.2018

[Ramesh Prajapati]

Thank you sir!

[DR.MARIAPPAN GOVINDARAJAN]

Interest is to be paid on ₹ 1,50,000 as opined by Shri Sivakumar.

[Yash Jain]

Dear Sir,

As the statement of the Queriest is "On which amount the Interest is Payable?", and it being an active sentence it is presumed that he has not paid interest to date on the Liability, as the question being asked is "On what amount the interest is payable".

As per GST Rules (Refer Sec 50 and clauses thereto) the Interest is to be calculated "Till the Date the Amount is not Paid" and hence accordingly the answer.

Also one question for my unders, how can one rectify the GST Return for a particular month, when the option is not itself enabled in the system?.

Regards

[Yash Jain]

Dear Sir,

I agree with the esteemed experts.

Regards

[Ramesh Prajapati]

Thank you for detail explanations...

[Ramesh Prajapati]

I read section 16(2) but don't find this provisions ... Kindly request to explain the legal provisions ...

[Ramesh Prajapati]

My query

If a dealer filed nil gstr 3b of july17.

But filed Gstr 1 of July17 with net tax liability ie 25000

Dealer rectified this mistake in December 17 gstr 3b.

As per gstr 3b of December 17

Output 80000

Itc 35000

Net tax 45000

(all figures are of july, which were not included in gstr3b of july17)

My question is related to interest to be paid on which amount? Why?

AI Summary

Interest on Revised GST Liability: Pay Interest on Additional 150,000 ITC from Aug to Dec 2017 A dealer initially reported a lower GST liability in July 2017, which was later corrected in December 2017. The initial output GST was 100,000 with an ITC of 80,000, resulting in a net GST of 20,000. This was later revised to an output tax of 250,000 and ITC of 150,000, leading to a net GST of 100,000. The main query was on which amount interest should be paid. Responses suggested interest on 150,000 from August to December 2017, as the additional ITC was not claimed in the original return. The discussion also covered legal provisions and the rectification process for GST returns.