Interest u/s 50 of CGST Act 2017

[Akash Dhiran]

Invoice dated 20.04.2023. GST Rs. 18/-

ITC for April 2023 GST Rs. 2/- If a company has missed to report the above invoice in GSTR-1 of April 2023 but reports it in GSTR-1 of June 2024.

Will interest be applicable for delayed reporting if company already has accumulated Electronic Credit Ledger balance of Rs. 140 from April 2023 itself.

AI Summary

Interest on Delayed Invoice Reporting: Section 50 Confusion Over ECL Balance and Input Tax Credit Timing A company inquired about the applicability of interest under Section 50 of the CGST Act 2017 for delayed reporting of an invoice in GSTR-1, despite having a sufficient Electronic Credit Ledger (ECL) balance. Responses varied: one participant noted that interest is not applicable if there is enough credit in the ECL, while another suggested that interest is applicable unless waived by the courts. A participant clarified that if the Input Tax Credit (ITC) was availed within the prescribed time limit, no interest is due. The discussion emphasized the complexity of Section 50's wording.