TaxTMI 
TaxTMI 
TaxTMI 
Interest under Section 50 of CGST Act
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....nterest under Section 50 of CGST Act<br> Query (Issue) Started By: - Kishor Deshpande Dated:- 30-8-2025 Last Reply Date:- 1-9-2025 Goods and Services Tax - GST<br>Got 11 Replies<br>GST<br>One of my client filed his GSTR-1 for the month of August 2021 within due date showing tax liability. There were on tax credit to be claimed for the said tax period and he paid entire tax by cash. However, ....
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....in GSTR 3B filed for the said period, tax liability was shown as zero and the balance remained in cash ledger. Then after, the said cash balance was not utilized for the payment of tax in any tax period. After that we received notice in ASMT 10. So, on receipt of ASMT 10, DRC 03 was filed. The question is that since cash balance was not utilized till filing DRC 03, dealer is liable to pay interest....
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.... upto filing of DRC 03 ? Reply By KASTURI SETHI: The Reply: Interest is payable as per Section 50(1) of CGST Act. There is no escape route, You are required to pay interest on your own without issuance of SCN. Reply By Kishor Deshpande: The Reply: Thank u sir Reply By Shilpi Jain: The Reply: No interest in case amount was deposited in electronic cash ledger within time - Eicher Mo....
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....tors Limited - 2024 (1) TMI 1111 - MADRAS HIGH COURT Refer to this Mad HC decision. Reply By Shilpi Jain: The Reply: Also refer to this proviso in rule 88B which in my view is applicable retrospectively Provided that where any amount has been credited in the Electronic Cash Ledger as per provisions of sub-section (1) of section 49 on or before the due date of filing the said re....
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....turn, but is debited from the said ledger for payment of tax while filing the said return after the due date, the said amount shall not be taken into consideration while calculating such interest if the said amount is lying in the said ledger from the due date till the date of its debit at the time of filing return Reply By Kishor Deshpande: The Reply: Thank u Shilpiji Reply By Kishor Deshpande....
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....: The Reply: Thank u Shilpiji Reply By Sadanand Bulbule: The Reply: Strictly speaking interest is laible to be paid because tax was not "paid" until it was set off in DRC-03, even if the cash was available in the ledger. Reply By Kishor Deshpande: The Reply: Thank u sir Reply By KASTURI SETHI: The Reply: 2024 (5) TMI 264 - PATNA HIGH COURT SINCON INFRASTRUCTURE PVT. LTD. Versus UNION O....
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....F INDIA Reply By Sadanand Bulbule: The Reply: I welcome the suabstantiated replies offered by Sirji. No more doubts. Reply By Kishor Deshpande: The Reply: Thank u sir<br> Discussion Forum - Knowledge Sharing ....