Interest on Cash payment of Liability

[Harshit Sanghvi]

Hi Everyone,

There was a differential liability of FY 17-18 in GST which we got to know while doing audit. We paid the liability in Cash with interest till the date of payment of challan but did not file DRC 03 for the same. DRC was filed after 2 months of challan payment.

Now the officer is asking for interest till the date of DRC but we want to pay interest only till the date of payment . Kindly share favorable case laws.

Thanks in advance

AI Summary

Debate on GST interest calculation: Should interest apply beyond challan payment until DRC 03 filing? Contributors argue no. A discussion on a GST-related issue where a differential liability from FY 17-18 was paid with interest until the date of challan payment, but DRC 03 was filed two months later. An officer demanded interest until the DRC filing date. Contributors argued that interest should only be till the payment date, as DRC 3 is procedural and there's no revenue loss. They cited that under the CGST Act, interest beyond the payment date is not justified. The conversation included appreciation for a contributor's insights and a commitment to ongoing participation in the forum.