GST
Interest or late fee not paid noted in scrutiny
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Facts
If you filed late but did not pay interest on late tax, the officer will ask for it. Work it out and pay through DRC-03.
Provisions and law
- Sec 50, CGST Act 2017Interest on late payment
- Sec 47, CGST Act 2017Late fee
- Instruction 02/2022-GST (22 March 2022)SOP for scrutiny: one ASMT-10 per GSTIN per year, specific and quantified discrepancies, DRC-03 payments to be considered, timelines for ASMT-12 or further action
Analysis
Instruction 02/2022-GST lists payment of interest under Sec 50 and late fee under Sec 47 as parameters. Interest is on the cash part of tax paid late. Example: tax of ₹70,000 paid 25 days late in cash; interest is about ₹863. Pay it through DRC-03 in cash.
Conclusion
- List months where returns or tax were late.
- Calculate interest on the cash part.
- Check that late fee was paid on filing.
- Pay any shortfall through DRC-03.
- Show the working in the reply.
A Savvy can do this for you
Scrutiny of returns, ASMT-10 notice and ASMT-11 reply
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