Interest on partial delayed payment of GST through Cash

[Sudhir Kumar]

Sir, I have made delayed payment of GST through some ITC and rest through Cash. Whether I have to pay interest on ITC as well as cash amount delayed paid or only to the part of such payment of GST which has been made through cash only.

AI Summary

Interest on Delayed GST Payments: Payable Only on Net Liability if Declared Timely per Proviso to Section 50. A query was raised regarding the interest payable on delayed GST payments made partially through Input Tax Credit (ITC) and cash. The question was whether interest applies to both ITC and cash or just the cash portion. Shilpi Jain clarified that, according to the proviso to Section 50, interest is payable only on the net liability declared in the original return, provided it is filed on time. If the liability is declared in a later return, the benefit does not apply. Kasturi Sethi agreed with this explanation, affirming it as accurate.