Interest when GST paid within due date but return filed late

• January 9, 2021
• CA Chandan Agarwal's Office

Interest not payable if GST return filed belatedly but amount deposited in Cash Ledger within due date?

During the inception of GST era and with the nascent GST portal, one of the most popular confusion that conned everyone was, whether payment of GST is completed with deposition of tax amount in Cash Ledger (CL) or payment is concluded only after the click on ‘Offset of liabilities’. Also due to technical glitches in earlier period, various assesses faced undue delay in filing return with prompt payment in cash ledger, which resulted in GST notice for recovery of interest.  Interestingly, determining the actual date of payment of taxes is also crucial in various other practical scenarios like, existence of excess balance in CL (similar to credit ledger) to avoid interest/penalty on any liability crystalized in future, eligibility of claiming credit on RCM transactions in the same month that of payment of RCM taxes, belated reflection of amount in CL, etc.

Read more on: https://taxguru.in/goods-and-service-tax/interest-gst-paid-due-date-return-filed-late.html