TMI BlogBalance in electronic cash ledgerX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir/Madam, after calculating March month liability,a company paid the amount in cash on 31st March. Inadvertently, the cash payment was shown as ITC and GSTR-3B was filed. After 21 months the mistake was realized and DRC-03 with interest @ 18%, was filed voluntarily appropriating the balance in cash ledger which was not appropriated for 21 months. Now in SCN, the interest is demanded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the 21 months @ 24%. The query is, since the cash payment was genuine and appropriation was delayed, and amount was not utilised throughout the period of 21 months, can we escape from interest liability , Kindly clarify, Umesh Babu - Reply By V Rajalakshmi - The Reply = Chances are very remote, there is no explicit exclusion like ITC is made available in Sec 50 ,Kindly ref Judgeme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt M/s Narsingh Ispat Limited through its Director Sri Ajay Kumar Singh - 2022 (3) TMI 1047 - JHARKHAND HIGH COURT --- --- Petitioner [All cases] IN THE HIGH COURT OF JHARKHAND AT RANCHI A very good judgement on levy of interest u/s 50 of the CGST / SGST Act . and use prov- Explanation( a) to sec 49(9) as a defense. - Reply By KASTURI SETHI - The Reply = In such a situation, you have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not caused any loss of revenue. Interest for what ? This is all procedural lapse nothing else. Issuance of SCN is not unexpected. Such SCN would not sustain at first stroke in the Court. - Reply By Shilpi Jain - The Reply = Interest even if liable should be demanded only @18 percent. Also no interest liabilty is some relief which you can get in courts . But I agree with Kasturi sir that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is no loss of revenue to government. I am pretty sure there will be a decision of the court on this matter in future. So consider paying interest on protest @18 percent and go for refund when any favourable order comes. - Reply By Ganeshan Kalyani - The Reply = If at all interest is payable it will be 18%. - Reply By Amit Agrawal - The Reply = Please see if you got SCN denying ITC (which c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an technically invite interest @ 24% p.a.) or only issue is 'delay in payment of taxes' (which can technically invite interest @ 18% p.a.). Is there any proposal for penalty in the SCN? Depending upon type of issues raised in SCN as well as submissions made by you during enquiry, read with how Form DRC-03 filed by you, one needs to take a call about how to go defending your case. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Balance in electronic cash ledger - Query Started By: - Umesh Babu Dated:- 19-5-2022 Goods and Services Tax - 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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