interest issue

[giri gattupalli]

respected sir,

one of my client under declared out -put-tax amounting to Rs 5,20,000 for FY 2022-23 and we have paid the same amount in sep -23 through filing FORM DRC-03 , by debting electronic credit ledger. during FY 2022-23 and up to now, always we had amount of input tax credit laying in electronic credit ledger. and now notice is by gst authorities, demanding interest amount for the out put tax declared and paid through form DRC-03.

please discuss as per the provisions of gst whether interest payable or not

thanking you

[PAWAN KUMAR]

Dear Sir,

As per my view, the tax has been declared in the return and return has been filed by the due date. The Tax which payable comes as unpaid/short paid and you paid this unpaid/short paid tax through DRC-03, although there were balance in the ECL, the interest is payable.

[Amit Agrawal]

It appears that you had raised similar issue under Issue-Id: 118657 bearing subject-line as 'SEC 50 ; CONSTITUTIONAL VALIDITY' and same was duly answered there by many contributors.

Please let me know if there is any new legal issue here, which was not considered earlier, so as to look into it.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Padmanathan KV]

I agree with Ld. friend Amit Ji. Both the conceptual aspect and legal aspect has been discussed at length in the said post.

To answer your query, interest shall be payable under section 50(1) here as the proviso to section 50(1) does not apply to your case.

[giri gattupalli]

thank you to all who responded. discussion is very useful.

AI Summary

Interest Demanded on Under-Declared GST Despite Payment via FORM DRC-03; Section 50(1) Cited by Authorities A client under-declared output tax of Rs 5,20,000 for the fiscal year 2022-23, which was paid in September 2023 using FORM DRC-03 by debiting the electronic credit ledger. Despite having sufficient input tax credit, GST authorities issued a notice demanding interest on the declared and paid tax. One respondent stated that interest is payable even if the tax was paid through DRC-03, while another referenced a similar issue previously discussed, emphasizing that interest is due under section 50(1) as the proviso does not apply. The original poster thanked contributors for their insights.