Compliance Pack
Interest on late tax payment, Sec 50
What this means, checked by a CA
When GST is paid late you owe interest at 18 percent a year, but only on the part paid in cash, and money already sitting in your cash ledger from the due date is not counted. We work out the correct interest period by period, check the portal's auto figure, and pay it so a notice does not follow.
₹999
As needed, + 18% GST
- Delivered in 2 working days after ledgers and return history are shared
- Due: Paid with the late return (GSTR-3B Table 5.1) or through DRC-03; runs until the tax is paid
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 5 items
Filed GSTR-3B with filing dates
Gives days of delay
Electronic cash ledger statement
Minimum balance reduces interest
Electronic credit ledger statement
Tests utilisation for Sec 50(3)
Tax liability by period
Old period sales reported late
Notices or intimations receivedOptional
Proviso relief lost after proceedings
DiscussionWhat we discuss · 5 items
Was the return late, or was tax short paid and added later?
Different interest rules apply
How much of the late tax was set off from ITC?
No interest on the ITC part
Was cash already in the ledger on the due date?
Excluded from interest under Rule 88B
Was ITC wrongly taken, and did the ledger fall below it?
Interest only if utilised
Has any notice already been issued for the period?
Then interest is on gross tax
FormsForms we file · 4 items
List each late or short-paid period with due date and payment date
Where: Internal. Due: Before paying
Compute interest by period
(Cash tax paid late minus minimum cash ledger balance from due date to debit) × 18 percent × days late ÷ 365. Example: ₹1,00,000 paid 30 days late, nil prior balance: ₹1,00,000 × 18% × 30 ÷ 365 = ₹1,479
Where: Internal. Due: Before paying
Compute Sec 50(3) interest on wrongly used ITC
Amount utilised × 18 percent × days from utilisation to reversal ÷ 365
Where: Internal. Due: Before reversal
Pay interest in GSTR-3B Table 5.1 (check the auto figure) or through DRC-03
Where: https://www.gst.gov.in. Due: With the late return or as soon as found
DeliverablesWhat you get · 2 items
Period-wise interest working
When: Before payment
Return or DRC-03 showing interest paid
When: Same day
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