Interest payable under Section 50 of CGST/SGST Act for delay in filing of GSTR-3B Returns from July 2017 to March 2019 returns

[kirankumar bonthalakoti]

My client received notice regarding Interest payable under Section 50 of CGST/SGST Act for delay in filing of GSTR-3B Returns from July 2017 to March 2019 returns and in the notice they calculated INTEREST PAYABLE ON CASH SET OFF and also on INTEREST PAYABLE ON ITC SET OFF for the period from July 2017 to March 2019.

Please clarify whether we have have to pay interest on ITC Setoff in the particular month along with Net Tax payable after ITC Setoff.

AI Summary

Interest on Delayed GSTR-3B Filings: Applicable on Gross Tax Liability, Pending Notification of Finance Act Amendment A discussion on a forum addresses the issue of interest payable under Section 50 of the CGST/SGST Act for delayed filing of GSTR-3B returns from July 2017 to March 2019. The query revolves around whether interest is applicable on the Input Tax Credit (ITC) setoff. Several responses clarify that interest is applicable on the gross tax liability, not just the net cash liability, unless the Finance Act No. 2 of 2019 amendment is notified. References to court decisions and GST Council recommendations suggest that interest should be charged on net tax liability retrospectively, but official notification is awaited.