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

[Asked by Guest]

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 GST returns: chargeable on cash portion once amendment is notified and applied retrospectively.
Interest on delayed GSTR 3B filings has been demanded on gross output tax before Input Tax Credit setoff; the Finance (No. 2) Act, 2019 amends this to limit interest to the cash portion only but remains unnotified, leading to continued departmental computation on gross liability, cited court rulings treating the amendment as clarificatory and GST Council recommendations for retrospective application notwithstanding ongoing recovery notices.