Question

XYZ making late payment of monthly GST and therefore liable to pay Interest. E.g. if he is paying GST today and total GST payable is Rs.100/- while today he has got balance of unutilized input tax credit of Rs.80/-, therefore he will be paying Rs.20/- in cash. As far as interest is concerned, he has to calculate on Rs.100/- or only on Rs.20/-?

Answer

You are liable to pay interest on Rs 100/- even if the net tax payable is Rs 20/-. Because the output tax liability remains outstanding till the time it is offset through E credit ledger in return.

Please refer to our daily mail dated 20-11-2018 and 15-11-2018, we have also provided the similar example in that. (Reply dt.05/12/2018)