Find
No. Under Sec 49(4), the credit ledger can be used only for output tax. Interest, late fee and penalty are paid from the cash ledger.
GST
Interest cannot be paid from ITC
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Provisions
Sec 49(4), CGST Act 2017; Rule 87, CGST Rules 2017
Analysis
Keep enough cash in the ledger before filing a late return. Deposit through PMT-06 using net banking, card or other modes. If the cash ledger falls short, the return cannot be filed. Plan cash for interest along with net tax.
Close
- Compute interest and late fee.
- Check the cash ledger balance.
- Deposit via PMT-06 if short.
- File the return or DRC-03.
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