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No. ITC in the electronic credit ledger can pay only output tax. Interest, late fee and penalty must be paid from the electronic cash ledger. Reverse charge tax must also be paid in cash.
GST
Late fee and interest must be paid in cash
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Provisions
Sec 49(4), CGST Act 2017; Sec 49(1), CGST Act 2017
Analysis
Example: GSTR-3B shows Rs 1 lakh tax, Rs 3,000 interest and Rs 1,000 late fee. Your credit ledger has Rs 1.5 lakh. You can pay the Rs 1 lakh tax from credit, but the Rs 4,000 must be deposited through PMT-06. Plan cash for late fee before filing late returns.
Close
- Check interest, late fee and RCM amounts in the return
- Deposit that amount through PMT-06 in cash
- Use credit only for forward charge output tax
- Offset and file the return
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