Find
Only on the cash portion. Under the proviso to Sec 50(1), where a return for a period is filed late, interest is on the tax paid by debiting the cash ledger, not on the part set off with ITC.
GST
Interest on late GSTR-3B only on the cash portion
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Provisions
Sec 50(1), CGST Act 2017; Rule 88B, CGST Rules 2017
Analysis
Suppose output tax for May was ₹2,00,000, ITC was ₹1,50,000, and 3B was filed 30 days late. Interest is on ₹50,000 net cash: about ₹740. This benefit does not apply if proceedings under Sec 73, 74 or 74A have started for that period. File late returns before any notice to keep it.
Close
- Compute output tax and ITC for the period.
- Find the net amount paid in cash.
- Compute interest on that amount for the delay.
- Pay with the return.
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