INVOICE REPORTED LATE IN GST RETURN AND UTILIZED INPUT CREDIT

[vinod jadhav]

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?

AI Summary

Interest under Section 50: whether interest applies when tax was discharged using input tax credit despite late invoice reporting.
A taxpayer reported an invoice late and paid the tax by utilising input tax credit; the tax authority demanded interest on the full amount. The legal question is whether interest under Section 50(1) applies where the tax was not disclosed in the original return but was ultimately discharged through available input tax credit, with competing views that Section 50 targets belated cash payment versus that nondisclosure activates interest liability.