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 delayed GST arises where ledger credits are not offset at filing; payment treated as made only upon return submission. Funds credited to the electronic cash ledger are treated as the taxpayer's balance until they are set off against liability when the return is filed; payment is regarded as effected at filing and the ledger debited then. Consequently, where the return is filed late and liability was not offset at filing, interest for late payment and late filing fees must be paid into the government account, and the portal requires offset and payment of interest/fees before allowing completion of return filing.