Interest on Tax liability be paid upto which date

[Navy G]

Interest is to be paid if tax liability is paid after the due date. However, my query is that what if we make the payment of tax liability before due date and Submit GTSR-3B by off-setting and file the return later on; will this still attract interest?

Our concern is that due to the lockdown situation we don't have DSC of the client to file the return. However, Payment can be made by the client. So will such situation attract interest if payment is made before due date and the return is filed at a later date (Before 24th June, 2020).

[Krishna Murthy]

Date of payment of tax shall be considered only on the date when off set of tax is done while filing GSTR 3B. Hence, interest gets attracted even if you pay tax before and off set the liability later. In fact, the tax you pay earlier is just something which gets credited in the Electronic Cash Ledger and you may even claim refund of the same at any point of time.

Secondly, if your problem is with regard to non availability of DSC, now the GST portal is so enabled to accept EVC and DSC is not mandatory.

[YAGAY and SUN]

The facility of EVC is limited to the COVID-19 pandemic lockdown period only.

[Ganeshan Kalyani]

I agree with the expert, the payment is said to be done only when 3B is filed. That is the reason govt has given option to file 3B with EVC instead of DSC. DSC is not available with most of the taxpayer.

[Ganeshan Kalyani]

Yes , Sir the facility to file 3B thru EVC validation is temporary only.

[CSSANJAY MALHOTRA]

Mr Navy,

I differ with views of experts. When you submit GSTR-3B , tax payment is offset and gets debited in your ECredit or cash ledger. No interest payment under section 50(1) if GSTR-3B submitted before due date. No EVC / DSC is required for same.

However late fees under section 47 of CGST act shall be levied for delay in filing of GSTR-3B.

We should understand difference between Submission and Filing of GSTR-3B.

[Navy G]

Also, keeping aside the lockdown situation, in normal scenario, if I set off the the 3B liability after making tax payment which means i have submitted the return and have not filed it yet. If for some reason I couldn't file GSTR-3B before due date but submitted the same before due date; will this attract Interest?

[KASTURI SETHI]

When tax is debited from your ECL and transferred/credited to Govt. account before due date, then why to talk of interest ?

[YAGAY and SUN]

Interest is not leviable if there is no delay in paying off Statutory due in terms of GST Liability.

AI Summary

Date of tax payment determines interest liability: offset on filing GSTR 3B triggers interest if settled after due date.
Interest under GST is determined by the date the tax is offset (debited) from the Electronic Cash/Credit Ledger when filing GSTR 3B; advance deposits into the ledger do not constitute payment for interest purposes. EVC can be used temporarily in place of DSC to enable filing during the COVID 19 lockdown. If the offset to the government account occurs before the due date, interest is not leviable, though late fees may apply for delayed filing.