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TMI BlogPayment of Taxes and Interest in GST LawX X X X Extracts X X X X X X X X Extracts X X X X ..... Payment of Taxes and Interest in GST Law X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of Taxes [ Section -49 ] A] Electronic cash ledger * Section provides for three kind of ledger Electronic cash ledger Electronic credit ledger Electronic liability ledger * Electronic Cash Ledger * Every deposit made for tax , interest, penalty and fees shall be credited to Electronic Cash Ledger in Form-GST PMT-5. * Taxes, Interest , Fees and penalty shall be paid by taxable perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in any of the following mode. * Internet banking * Debit or credit card * NEFT or RTGS * Over the counter payment in Authorised banks for deposit up to ₹ 10000 per challan per tax period by cash, cheque or demand draft. * RP will create challan on GST PMT-6 on the common portal and enter the detail of amount to be deposited by him towards tax, fees, penalty and interest. * Chal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lan created above shall be valid for 15 days. * Any challan created by non registered dealer shall be with temporary identification number. * On success credit to the Govt a/c CIN shall be created . If the CIN is not generated then RP may filed GST PMT -07 to bank through the common portal. B] Electronic credit ledger * The input tax credit of RP on self assessed basis in the return of taxa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble person shall be credited to his Electronic Credit Ledger on the common portal in Form -GST PMT-2. * The electronic credit ledger may include the following * ITC from inward supply from registered person. * ITC from ISD * ITC on stock immediately preceding the day when RP is liable for payment of tax. * ITC available on payment made on reverse charge. RP upon noticing any problem can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply on GST PMT-04 on common portal. * Manner of Utilisation of ITC * Amount of input tax credit in IGST, CGST, SGST or UTGSTshall be utilized as follows : * ITC of IGST available in Electronic Credit Ledger shall be utilized first for payment of IGST Liability and after wards for the payment of CGST and SGST. * The amount of CGST available in Electronic Credit Ledger of CGST shall be ut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilized for first payment of CGST and then IGST afterwards. * The amount of SGST/UTGST available in Electronic Credit Ledger of SGST shall be utilized for first payment of SGST/UTGST and then IGST afterwards. * Input tax credit available in Electronic Credit Ledger of SGST/UTGST can not be utilized for payment of CGST or vice versa. * The balance in the cash or credit register after payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f taxes , interest and penalty or fees under the act may be refunded as prescribed under Section- 54 and the amount refunded shall be reduce from the respective ledger a/c. C] Tax Liability Ledger * All amount payable by taxable person shall be debited in Electronic Liability Register in Form-GST PMT-01. Payment of every liability by registered taxable person shall be by debiting the electronic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit ledger and crediting the electronic liability register. Explanation- "Tax due" means tax payable under the Act but does not include interest , fees or penalty. " Other due " mean interest, fees and penalty. Interest on delayed payment of Tax [ Section 50 ] * Every person liable to pay tax and fails to pay the same on due date , shall pay interest on unpaid amount at the rate as pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escribed from the due date of payment of tax to the date of payment. Interest shall be paid to the account of central or State Government. * Interest shall be paid from the first day on which such tax was due. * In case taxable person claim excess input credit u/s 42[10] and or reduction in output tax liability u/s 43[10], shall be liable to pay interest on such amount excess claimed or reduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in output tax liability under . Situation when interest is payable * Delay in payment of Tax - Interest rate can not exceed 18% * Undue or excess claim of ITC- S.42[10]- Interest rate can not exceed 24% * Excess reduction in Output tax liability-S.43[10]- Interest rate can not exceed 24%. * Tax return u/s 39 shall be valid only if the tax payable as per the return is paid in full. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * Section 73[5] and 73[6] provide that if the interest is paid, adjudicating authority shall not serve any show cause notice.
* Section 78 provides that where show cause notice has been issued but the interest is paid within 30 days of issue of notice , no penalty in this case shall be payable and case shall be concluded there only. X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, professionals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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