interest on gst liability

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

We have some query regarding payment of interest against the tax liability as narrated below.

CGST SGST

OUT PUT 10,000 10,000

Less: Input available against IGST 5,000 -

------------- ------------

Net liability 5,000 10,000

As per the recent amendment we have to adjust the IGST input first to CGST if any surplus only then we can adjust against SGST. In the above scenario if i calculate the interest u/s 50 of GST Act and filing the return belatedly and while filling the challan, whatever the amount entering as interest in the cgst column the same is appearing in SGST also. whereas the interest should have to be paid on 5000/- & 10000/- are CGST & SGST respectively.

Thanks in Advance.

[KASTURI SETHI]

Wait for modification of software of Common Portal System. Financial Bill, 19 still to be enacted.

[Ganeshan Kalyani]

The system is sometime not update as per the law.

[KASTURI SETHI]

In this context, Board's circular no.98/17/2019-GST dated 23.4.19. It is necessary to go through.

AI Summary

Interest on GST liability misallocation by portal software may duplicate entries; follow circular guidance and await software update. The issue concerns computation of interest on GST liability where amended rules require IGST credit to be applied to CGST first and then SGST, producing distinct net CGST and SGST liabilities; portal behaviour that duplicates interest entries across CGST and SGST columns may overstate payable interest. Respondents note the portal software is not yet updated and advise awaiting system modification and following the Board circular for interim guidance.