TaxTMI 
TaxTMI 
TaxTMI 
Balance in electronic cash ledger
X X X X Extracts X X X X
X X X X Extracts X X X X
....alance in electronic cash ledger<br> Query (Issue) Started By: - Umesh Babu Dated:- 19-5-2022 Last Reply Date:- 30-5-2022 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Sir/Madam, after calculating March month liability,a company paid the amount in cash on 31st March. Inadvertently, the cash payment was shown as ITC and GSTR-3B was filed. After 21 months the mistake was realized and DRC....
X X X X Extracts X X X X
X X X X Extracts X X X X
....-03 with interest @ 18%, was filed voluntarily appropriating the balance in cash ledger which was not appropriated for 21 months. Now in SCN, the interest is demanded for the 21 months @ 24%. The query is, since the cash payment was genuine and appropriation was delayed, and amount was not utilised throughout the period of 21 months, can we escape from interest liability , Kindly clarify, Umes....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h Babu Reply By V Rajalakshmi: The Reply: Chances are very remote, there is no explicit exclusion like ITC is made available in Sec 50,Kindly ref Judgement M/s Narsingh Ispat Limited through its Director Sri Ajay Kumar Singh - 2022 (3) TMI 1047 - JHARKHAND HIGH COURT --- --- Petitioner [All cases] IN THE HIGH COURT OF JHARKHAND AT RANCHI A very good judgement on levy of interest u/s 50 of the CG....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ST / SGST Act. and use prov- Explanation( a) to sec 49(9) as a defense. Reply By KASTURI SETHI: The Reply: In such a situation, you have not caused any loss of revenue. Interest for what ? This is all procedural lapse nothing else. Issuance of SCN is not unexpected. Such SCN would not sustain at first stroke in the Court. Reply By Shilpi Jain: The Reply: Interest even if liable should be deman....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ded only @18 percent. Also no interest liabilty is some relief which you can get in courts . But I agree with Kasturi sir that there is no loss of revenue to government. I am pretty sure there will be a decision of the court on this matter in future. So consider paying interest on protest @18 percent and go for refund when any favourable order comes. Reply By Ganeshan Kalyani: The Reply: If at ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....all interest is payable it will be 18%. Reply By Amit Agrawal: The Reply: Please see if you got SCN denying ITC (which can technically invite interest @ 24% p.a.) or only issue is 'delay in payment of taxes' (which can technically invite interest @ 18% p.a.). Is there any proposal for penalty in the SCN? Depending upon type of issues raised in SCN as well as submissions made by you dur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing enquiry, read with how Form DRC-03 filed by you, one needs to take a call about how to go defending your case.<br> Discussion Forum - Knowledge Sharing ....