| Nov-16-2021

gstr9 and adjustment of liability

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  • CA Venkataramanikota janaki ram
    Participant

    Sir While filing the gstr3B for Jan -March 21 qtr under QRMP basis the turn over and its liability for jan and feb was not included resulting in short payment of liability. However the same was included in GSTR1. While filing the gstr9 can this differential tax be adjusted against the available input credit and the interest payment in cash?

    regards
    j r kota

    CA VenkataramaniCA Venkataramani
    Compliance Expert

    Comment: In terms of the Proviso to Section 50(1) of the CGST / respective SGST Act, 2017, interest is liable to be paid on the amount of tax paid by way of debiting Electronic Cash Ledger provided the turnover and corresponding tax payable thereon is reported in the return filed belatedly in Form GSTR – 3B for the said tax period. The annual return is filed under Section 44 of the CGST / respective SGST Act, 2017 read with Rule 80 of the CGST / respective SGST Rules, 2017 and not under Section 39. As such, in my considered view, the interest is liable to be paid on the whole of the additional tax liability ascertained in the annual return in Form GSTR – 9 irrespective of the fact that such tax is remitted either by way of cash or by way of utilising input tax credit.

    CA Venkataramanikota janaki ram
    Participant

    Sir

    Thank you very much for the very prompt reply and advise. But the point I was requiring clarification is with reference to the tax liability component. Can this be paid,while filing the gstr9, through the credit balance ledger amount.

    Yes the interest component would be paid in cash – based on the calculation of interest from the original due date to the date of filing the gstr9.
    with kind regards
    j r kota

    CA VenkataramaniCA Venkataramani
    Compliance Expert

    Yes, the amount towards tax liability may be remitted through Form GST DRC – 03 basis the additional tax liability ascertained in the annual return in Form GSTR – 9 by utilising the input tax credit balance available in the electronic credit ledger.

    As regards interest your understanding that it ought to be remitted by way of cash is correct.

Viewing 4 posts - 1 through 4 (of 4 total)