TMI BlogGST paid but not debitedX X X X Extracts X X X X X X X X Extracts X X X X ..... We had made Short payment of GST for the period July 2017 to Sept 2017. At time of GST Audit, our Auditor pointed out the short payment and we made payment thorough GST PMT - 06 along with interest in May 2018. DRC 03 was not active at that time. We did not debit the same in GSTR 3B of May 2018 and the same was lying in Electronic credit Ledger till Oct 2018. We did not utilize the same for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other purpose. In Oct 2018, the department pointed out that we have to debit the same and pay interest till Oct 18 and not May 18. Is there any remedy for the same? - Reply By KASTURI SETHI - The Reply = The department's objection is absolutely correct. Since you did not debit the amount, that very amount was not transferred into Govt. You will have to pay interest up to the date of pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of tax i.e.October, 18. You cannot get any relaxation in this aspect on the ground that interest is payable only on net cash liability. That is not applicable to this scenario. - Reply By Alkesh Jani - The Reply = Shri I agree with the views expressed by our Expert Shri Kasturiji Sir. As the amount is not credit to the Govt. Account, it cannot be said as payment of tax. This is case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Non-payment rather than short payment. - Reply By Shilpi Jain - The Reply = Harsh as it may sound but that is how the GST law has been drafted. The actual fact is that the money paid in the electronic cash ledger has already reached the Government account but the interest is still demanded as the amount is actually not debited from there. This is a similar way in which ambiguity was there w.r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .t. the interest provisions, unreasonable as it can be. Though today we see that the Council has made retrospective amendment to bring clarity to the department that they cannot incorporate any kind of law that they wish to in order to loot the innocent taxpayers. Though, it is not known how long it would take for many provisions like these to be eradicated from the GST law books!! It requires the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... industry and trade to be active and make representations. - Reply By KASTURI SETHI - The Reply = In this scenario , without setting off liability from Electronic Credit Ledger, we cannot say GST has been paid. - Reply By Ganeshan Kalyani - The Reply = I agree with the views of the expert. - GST paid but not debited - Query Started By: - Dinesh Mehta Dated:- 19-2-2021 Goods and Services T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax - GST - Got 5 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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