Charge of Interest Under Section 50(1) for Delayed Filing of GSTR3B—Tax Lying Deposited in Electronic Cash Ledger—Validity of—ACS. Shruti Phophaliya

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The Tax Publishers GST--Interest on Delayed Payment of Tax Charge of Interest Under Section 50(1) for Delayed Filing of GSTR-3B--Tax Lying Deposited in Electronic Cash Ledger--Validity of ACS. Shruti Phophaliya GST regime mandates timely filing of returns by registered taxpayers. One of the crucial aspects of GST compliance is filing of GSTR-3B return. The taxpayers are required to file GSTR-3B return by the prescribed due date and deposit the due taxes. However, several taxpayers have been issued notice for payment of interest on late filing of GSTR-3B, especially where tax has been deposited in the Electronic Cash Ledger within the due date of filing return. The learned author addresses this issue in this write-up. 1. Understanding Form GSTR-3B Form GSTR-3B is a monthly/quarterly summary return that a taxpayer is required to file to declare his tax liabilities. The due date for filing Form GSTR-3B is 20th of the subsequent month, subject to State-specific deadlines. This return contains details about outward and inward supply of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars as may be prescribed. Any delay in filing this return would attract penalty or interest or late fee. 2. Legal Framework Section 39(7) of the Central Goods and Services Tax Act, 2017 (in short "CGST Act") mandates that every registered person, who is required to furnish a return under sub-section (1) or sub-section (2) or sub-section (5) of section 39, has to pay the tax due to the Government as per such return not later than the last date on which he is required to furnish such return. Accordingly, taxpayers are required to pay the tax to the Government before the last date of filing return in Form GSTR-3B. It implies that the payment of tax must occur not later than the last date of filing of GSTR-3B return. It is pertinent to note that for payment of tax to the Government, filing of Form GSTR-3B is not material but the last date for furnishing such return is important, because tax should have been paid on or before the last date of filing of Form GSTR-3B. Thus, it is immaterial whether GSTR-3B is filed within the due date or not but the tax has to be remitted not later than the last date of filing the GSTR-3B return. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Interest on Delayed Payment of Tax

Charge of Interest Under Section 50(1) for Delayed Filing of GSTR-3B--Tax Lying Deposited in Electronic Cash Ledger--Validity of

ACS. Shruti Phophaliya

GST regime mandates timely filing of returns by registered taxpayers. One of the crucial aspects of GST compliance is filing of GSTR-3B return. The taxpayers are required to file GSTR-3B return by the prescribed due date and deposit the due taxes. However, several taxpayers have been issued notice for payment of interest on late filing of GSTR-3B, especially where tax has been deposited in the Electronic Cash Ledger within the due date of filing return. The learned author addresses this issue in this write-up.

1. Understanding Form GSTR-3B

Form GSTR-3B is a monthly/quarterly summary return that a taxpayer is required to file to declare his tax liabilities. The due date for filing Form GSTR-3B is 20th of the subsequent month, subject to State-specific deadlines. This return contains details about outward and inward supply of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars as may be prescribed. Any delay in filing this return would attract penalty or interest or late fee.

2. Legal Framework

Section 39(7) of the Central Goods and Services Tax Act, 2017 (in short "CGST Act") mandates that every registered person, who is required to furnish a return under sub-section (1) or sub-section (2) or sub-section (5) of section 39, has to pay the tax due to the Government as per such return not later than the last date on which he is required to furnish such return.

Accordingly, taxpayers are required to pay the tax to the Government before the last date of filing return in Form GSTR-3B. It implies that the payment of tax must occur not later than the last date of filing of GSTR-3B return. It is pertinent to note that for payment of tax to the Government, filing of Form GSTR-3B is not material but the last date for furnishing such return is important, because tax should have been paid on or before the last date of filing of Form GSTR-3B.

Thus, it is immaterial whether GSTR-3B is filed within the due date or not but the tax has to be remitted not later than the last date of filing the GSTR-3B return.