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/-?

AI Summary

Interest on Late GST Payments: Calculate on Total Payable Amount, Not Just Cash Payment, Despite Unutilized Credit. A discussion on a forum addressed the issue of calculating interest on late GST payments. The query involved determining whether interest should be calculated on the total GST payable amount of 100 or only on the cash payment of 20, given an unutilized input tax credit of 80. Respondents, including experts, consistently advised that interest should be calculated on the full amount of 100, as the 80 in the credit ledger remains unutilized until the GST return is filed.