under declaration of tax

[giri gattupalli]

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

AI Summary

Input tax credit use: ITC can satisfy past GST liability if available on the relevant due date and recorded.
Discharging an assessed GST demand by utilising Input Tax Credit depends on the Electronic Credit Ledger balance on the relevant due date and supporting records; availability in the ledger is treated by many as equivalent to payment but entitlement requires proof of balance on each due date. Interest relief is limited by the announced waiver scope and contested judicially: some authorities link interest exemption to ITC availability on the due date, while others treat payment as effective only on return filing and thus impose interest regardless of ledger credit.