TaxTMI 
TaxTMI 
Dear experts,
I filed the returns 50 days late. I had sufficient balance in cash ledger. In the return I paid the GST on reverse charge. Should I pay the interest?
Kindly give the answer
with regards
Interest in GST
06 Sep 2021 
3 Replies 
1009 Views Asked by
Interest on delayed GST payment: payable from the date tax is debited to the government account despite cash ledger balance.
Interest is payable on delayed GST payment because payment is effected only when the tax amount is debited/settled to the government account on filing; a balance in the Electronic Cash Ledger does not prevent interest. The department will levy interest on delayed net GST liability; a retrospective amendment was approved but notification for charging interest has been issued only for the forward period. Contested challenges are possible as interest is compensatory, but litigation may be lengthy. (AI Summary)
Interest is payable on delayed GST payment because payment is effected only when the tax amount is debited/settled to the government account on filing; a balance in the Electronic Cash Ledger does not prevent interest. The department will levy interest on delayed net GST liability; a retrospective amendment was approved but notification for charging interest has been issued only for the forward period. Contested challenges are possible as interest is compensatory, but litigation may be lengthy. (AI Summary)