Hello,
One of my client has filed invoice late in the GST return of December, 2020 instead of October, 2020. The liability has been paid through ITC.
The department done audit asked him to pay the interest on the whole amount.
Whethere interest is payble even if liability is paid through ITC?
Debate on GST interest: Does Section 50(1) apply to late ITC use in December 2020 for October 2020 tax? A client filed an invoice late in the December 2020 GST return instead of October 2020, settling the liability through Input Tax Credit (ITC). During an audit, the department demanded interest on the entire amount. One response suggested that interest should not apply to ITC, referencing a Madras High Court decision. Another response argued that interest under Section 50(1) is applicable, as the tax for October 2020 was not disclosed timely. The discussion highlights differing interpretations of Section 50 regarding interest on delayed GST payments when ITC is used. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
