Outward liability shown in GSTR9 and settlement of tax

[Sudhir Kumar]

One of my client has inadvertently missed to show complete sell /outward tax liability in GSTR-1. Hence no question of short payment arises. But later on he has shown excess outward supply in the GSTR-9 for the same period and paid applicable tax through DRC-03 but not paid the interest as he argued that he filed annual return and excess liability has been shown in annual return and tax paid accordingly. The matter pertains to 2017 18 and he filed annual return on 5.12.2020 while made payment on 20.12.2020. Whether liability shown in annual return instead of GSTR-1 is currect and whether he is liable to pay interest,as department sought. Please guide.

AI Summary

Interest on delayed GST payment applies despite correction in annual return when supplies were omitted from monthly returns.
Whether interest is payable where outward supplies omitted from monthly returns were later disclosed in the annual return and tax paid by debiting ITC via DRC-03. Correcting figures in the annual return does not remove the procedural lapse of not reporting in the monthly return. Interest for delayed payment is chargeable under the statutory interest provision and Rule 88B; the proviso limiting interest to tax paid from the electronic cash ledger applies only when the late return is filed before commencement of assessment or investigation and when the supplies were declared in the return for that period. Use of ITC does not, by itself, negate interest liability.