Late Discharged of Liability in GSTR 3B

[meil megha]

Dear experts

we have disclosed the liability by filing GSTR-1 but we have disclosed the liability in GSTR 3B in later months after due date . We were having sufficient ITC balance for the entire period since disclosure of short liability till disclosure of same in the later months and the liability has been discharged by utilization of GST credit and not by cash. So as per the proviso of section 50 (1) of Central Goods and Service Tax Act the interest will it applicable.

AI Summary

Debate on GST late tax discharge: Is interest under Section 50(1) applicable if paid via credit ledger? A discussion on the Goods and Services Tax (GST) forum centers around a query regarding the late discharge of tax liability in GSTR-3B, despite having sufficient Input Tax Credit (ITC). The main issue is whether interest is applicable under Section 50(1) of the Central Goods and Service Tax Act. Some experts argue that interest is not applicable if payment is made through the credit ledger, while others assert that interest is due if taxes are paid later than disclosed in GSTR-1. The discussion highlights differing interpretations of the law, with some suggesting potential court challenges to interest liability.