Interest on GST

[Shyam Naik]

Tax deposited before due date. Return is files late.

Common Portal does not permit payment of tax from credit ledger or cash ledger. Its an automated process at the time of filing return.

Whether interest liability arises?

[KASTURI SETHI]

Tax must be credited into Govt. account. Tax deposited means it is lying in your Electronic Cash Ledger which is yours. Liability is required to be set off. Late fee also to be paid. Unless and until liability is set off, the portal will not allow you to file return. Interest for late payment of tax and late fee for late filing return both are required to be paid into Govt. account. Thereafter, portal will allow you to proceed.

[Himansu Sekhar]

As per sec. 49, tax is paid when you file the return. Interest under sec. 50 is due because your cash ledger is debited when you filed the return

[Ganeshan Kalyani]

Once the tax payer pays the amount it gets credited in the electronic cash ledger. His bank account gets debited. The cash ledger is government account. However considered as the tax payers account. That is the reason it is said that till the cash paid is offset against the liability while filing return it is not considered as tax paid. One thought comes in mind is If it is assumed as a tax payer's account then the cash withdrawal facility should also have to be given. Second thought is if only offset of cash paid against liability can construe as tax paid then the tax payer can pay cash and offset it if unable to file. Because before the return is filed it can does offset. The return is saved as well. Third thought is that the government since it is generously accepted the request of the tax payer should also accept the fact that the tax payer has paid the tax and only offset is not done due to any justifiable return should consider as tax has been paid by the tax payer and waive late fee.

AI Summary

Interest on GST Arises if Return Filed Late Despite Early Deposit; Section 50 Applies. Debate on Late Fees Waiver. A discussion forum addresses whether interest liability arises when GST is deposited before the due date, but the return is filed late. One participant clarifies that tax must be credited to the government account, and both interest for late payment and a late fee for filing must be paid before the portal allows return filing. Another explains that tax is considered paid upon return filing, hence interest accrues under Section 50. A third contributor suggests that since the cash ledger is deemed a taxpayer's account, the government should consider tax paid upon deposit and waive late fees if offsetting is delayed.