interest payable

[giri gattupalli]

respected sir ,

one of my client's actual out put tax liability during the month of MARCH -2022 was 10 lakh rupees and i have declared as 8 lakh rupees only due to clerical mistake. and i have 5 lakh rupees input c/f for month of MARCH-22 .now i want to declare missed-out out put tax liability for MARCH-22 through filing FORM-DRC-03 and to discharge tax liability through debiting electronic credit ledger.(i have credit carry forward laying in my credit ledger around 4 lakhs at present ).and i need not to debit cash ledger to discharge my additional liability for month of MARCH-22 .

i request our eminents to discuss that, as per the amended interest provisions whether i have to pay interest for late declaration of out put tax liability or not even though i need not to pay any cash .

thanking you sir

AI Summary

Interest liability on short-paid GST applies even when liability discharged from input tax credit, per amended interest rules.
Amended GST interest provisions require interest on the entire tax short paid when output tax is under-declared, payable even if the additional liability is later discharged from the electronic credit ledger; commentators note that amendments and the interest calculation rule support this position while questioning the constitutional validity and legal basis for interest where no cash loss to the government is evident.