WHETHER INTEREST IS PAYABLE OR NOT???

[BARUN MUKHERJEE]

Respected sir,

One of my client has wrongly incorporated output cess amounting to Rs. 3,76,215.98 instead of Rs. 37,62,215.98 in GSTR 3B for the month of Aug'19. But GSTR 1 was rightly been filed for the said month. In this connection this is also to be noted that outward supply was correctly been shown in GSTR 3B for the said month. The apparent mistake was purely an inadvertent typographical human error and the same has also been rectified and disburse the short output cess through GSTR 3B for the subsequent F.Y. i.e. month of July'20 by debiting electronic credit ledger from before commencement of any proceedings u/s 73 or 74. This is for your information my client has maintained sufficient balance in his electronic credit ledger from Aug'19 to July,20. Now during audit u/s 65 Dept has pointed out the short payment of interest due to delay payment of output cess which i have discussed earlier. Now my question is that is there any possibility to save interest? If yes please share valuable suggestions of yours.

AI Summary

Interest Liability Debate on Typo Error in GSTR-3B; Discussing Compensatory Nature and GST Provisions A client made a typographical error in reporting output cess in their GSTR-3B for August 2019, declaring Rs. 3,76,215.98 instead of Rs. 37,62,215.98, although GSTR-1 was filed correctly. The error was rectified in July 2020 before any proceedings under sections 73 or 74 commenced. During an audit, the department noted a short payment of interest due to this delay. The discussion revolves around whether interest is payable and explores legal interpretations, including the compensatory nature of interest and relevant provisions under GST law. Contributors provide insights and potential arguments for and against the liability of interest.