Applicability of interest on disputed GST amount

[KARAN VERMA]

Sir, if I want to pay any GST liability which is disputed i.e not confirmed whether same is taxable or not. In order to avoid penal provisions I want to pay GST tax amount only.

Whether I need to pay interest also. What plea I should taken to save interest amount.

AI Summary

Paying Disputed GST Under Protest May Protect Taxpayers, Citing Section 174 of CGST Act; Interest Considerations Discussed A forum participant inquired about the necessity of paying interest on a disputed GST amount to avoid penalties. One respondent suggested paying the GST amount under protest, despite no explicit provision for this in the GST law. Another advised notifying the department of the payment as a dispute, with interest accruing only if further payment is required after assessment. A third respondent supported these views, citing Section 174 of the CGST Act, which may allow for such payments under protest to protect the interests of taxpayers and prevent penalties, suggesting that interest could also be paid under protest if necessary.