Interest on late payment of GST

[Kaustubh Karandikar]

XYZ making late payment of monthly GST and therefore liable to pay Interest. E.g. if he is paying GST today and total GST payable is ₹ 100/- while today he has got balance of unutilized input tax credit of ₹ 80/-, therefore he will be paying ₹ 20/- in cash. As far as interest is concerned, he has to calculate on ₹ 100/- or only on ₹ 20/-?

[CASusheel Gupta]

₹ 100/-

₹ 80/- lying in credit ledger are treated as unutilized till set off on filing of GSTR 3B

[DR.MARIAPPAN GOVINDARAJAN]

Interest is to be calculated on ₹ 100/-

[KASTURI SETHI]

I support the views of both experts.

[YAGAY andSUN]

Interest would be charged on ₹ 100/-

AI Summary

Interest on full tax liability: interest is calculated on entire GST due even if input tax credit is available. Interest on late GST payment is computed on the entire tax liability; unutilized input tax credit in the credit ledger remains unutilized until it is set off by filing GSTR 3B, and until such set off the base for interest calculation is the gross GST payable.