TaxTMI 
TaxTMI 
The CGST Range officer, while scrutiny of the GSTR-B returns for the period July-17 to Dec-2018 have observed and stated that my friend's firm has not discharged the interest liability on gross output liability, but paid on net output liability for the period from July, 2017 to Sept., 2017 i.e. for three months. We solicit your expert comment on such query as payment of interest liability is correct or otherwise with notification, clarification or council clarification supported with rulings thereon, if any. Since no such explanation has been provided as to the manner of discharge the liability of interest on outstanding output liability.
Whether interest liability as per Section 50 of CGST Act.
05 Apr 2019 
5 Replies 
6663 Views Asked by
Interest liability on GST may be imposed on gross output tax without adjusting input tax credit for delayed returns.
Whether interest under Section 50 should be charged on gross output tax or net output tax after adjustment of input tax credit when returns under Section 39 are delayed; revenue relies on return-linked availability of ITC and ledger-debiting rules to support interest on gross output, while counter-arguments invoke the purpose of input tax credit, unjust enrichment concerns, and the GST Council's view favoring interest on net liability; notification or amendment is awaited and judicial decisions have been mixed. (AI Summary)
Whether interest under Section 50 should be charged on gross output tax or net output tax after adjustment of input tax credit when returns under Section 39 are delayed; revenue relies on return-linked availability of ITC and ledger-debiting rules to support interest on gross output, while counter-arguments invoke the purpose of input tax credit, unjust enrichment concerns, and the GST Council's view favoring interest on net liability; notification or amendment is awaited and judicial decisions have been mixed. (AI Summary)