TaxTMI 
TaxTMI 
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?
Interest on GST
08 Sep 2019 
3 Replies 
1566 Views Asked by
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. (AI Summary)
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. (AI Summary)