Interest in DRC 07

[SANTOSH PATIL]

Sir, If in DRC 01 tax is mentioned and interest as per applicable rate u/s 50 then can department demand interest in DRC-07 Order or they had to quantify interest amount in SCN DRC 01

AI Summary

Debate on Interest Calculation in GST: Can DRC-07 Include Interest if Not in DRC-01? Sections 75(7) & 75(9) Explained. A discussion on a forum revolves around the issue of interest quantification in the context of Goods and Services Tax (GST) in India. A query was raised about whether interest should be quantified in the DRC-07 order if mentioned in DRC-01. One participant argues that interest cannot be quantified in advance since it is calculated up to the tax payment date. Another cites sections 75(7) and 75(9) of the GST Act, explaining that interest can be demanded even if not specified in the order. The discussion also touches on the applicability of these sections to cases of incorrect Input Tax Credit (ITC) utilization and erroneous tax refunds.