Interest under section 50

[Vaishnavi Bubesh]

Dear Experts,

• We have filed Dec 2018 GSTR-3B return on 21.01.2019, one day belatedly.
• However, the payment of net cash liability and liability offsetting was also made on 19.01.2019 itself.
• Therefore there is no delay in payment of tax, but only delay in filing of return.
• Now department has issued intimation in Form -DRC-01A for payment of interest for one day delay.

Does Interest u/s 50 of CGST Act is also applicable for delayed filing of GSTR-3B, even if the net tax liability cash payment & offsetting was done before due date?

Please advise?

AI Summary

Debate on Section 50 CGST Act: Does interest apply for late GSTR-3B filing despite timely tax payment? A discussion forum addressed whether interest under Section 50 of the CGST Act applies to delayed filing of GSTR-3B returns, despite timely tax payment. The query arose from a one-day delay in filing, though the tax was paid before the due date. Participants debated the issue, with some arguing interest should not apply since the tax was credited to the government on time. Others noted that the department considers tax paid only upon return filing, potentially leading to interest demands. The consensus suggested that legal challenges or court decisions might be necessary to resolve such disputes.