respected sir,
one of my dealer received letter/ intimation from department asking to pay under declared gst amounting to rs 1,20,600 and interest @18% for fy 2020-21. and after verification of books of accounts we found that , tax demand is genuine and we decided to pay.
1. i have excess of input tax credit laying in my electronic credit ledger now. can i pay the tax due for fy 2020-21 by utilizing present input tax credit ?. i heard different opinions.
2. whether i need to pay interest or not ( in the light of interest waiver announcement made by financial minister .)
please discuss. thanking you
Dealer Must Pay Under-Declared GST with 18% Interest; Excess ITC Usable, Interest Waiver Not Applicable for FY 2020-21 A dealer received a notice to pay under-declared GST of Rs 1,20,600 with 18% interest for FY 2020-21. After verifying accounts, the tax demand was found genuine. The dealer asked if they can use their excess input tax credit (ITC) to pay this liability and whether interest is applicable given a recent waiver announcement. Responses indicated ITC could be used, but interest for FY 2020-21 is not waived. Interest liability depends on the credit balance on the due date and is not waived even if ITC was available, as clarified by various court rulings. (AI Summary)
TaxTMI 
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