Question

I want to know the interest application u/s 50 of the GST act I have output liability of Rs 10000 in june 18 I have input credit of Rs 9000 in june 18. I paid challan via electronic mode and filled 3B return for one month delay i.e on august 18. Now tell me how interest under section 50 would be calculated. Is it on the value of Rs 1000/- or entire 10000/- even i was having input credit in my account. if it is on entire 10000/- then should not it be taken as against the spirit of law.

Answer

You are liable to pay interest on Rs 10,000/- even if the net tax payable is Rs 1000/-. Because the output tax liability remains outstanding till the time it is offset through E credit ledger in return. (Reply dt.18/09/2018)