GST
Entering interest in GSTR-4 Table 8
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Facts
Yes. Tax and late fee are auto-drafted in Table 8, but interest has to be entered manually.
Provisions and law
- Rule 62, CGST Rules 2017Quarterly CMP-08 statement and annual GSTR-4 return for composition taxpayers
- Sec 50(1), CGST Act 2017Interest at 18 percent a year on tax paid late
Analysis
The GSTR-4 FAQ notes interest is entered by you. Interest under Sec 50(1) is 18 percent a year on tax paid late. Example: Q2 CMP-08 tax of ₹15,000 paid 40 days late; interest is about ₹15,000 x 18 percent x 40 / 365, roughly ₹296. Interest is paid in cash.
Conclusion
- List any late CMP-08 payments.
- Calculate interest for each.
- Enter the total in Table 8.
- Pay in cash and file.
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GSTR-4 annual return for composition dealers
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