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All QuestionsCategory: GST ConsultancyHow to avoid interest on 3b late payments
Profile photo of Harrachit SinghHarrachit Singh asked 3 weeks ago

How to avoid interest on 3b late payments

A party is to file pending 6 gstr3b returns and department is asking to pay interest as well…..how we can save party to pay interest??

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1 Answers
Profile photo of Mrinal Kanti DasMrinal Kanti Das answered 1 week ago

Firstly I want to say, if you not paid the tax but already collect the tax from your supplier then section 122 of Cgst act is already tracking as you are collect the tax but not paid within the 3 months so that is a factor for you…..
Now,  YOU CAN SAVE THE INTEREST BUT YOU HAVE TO PROVE GSTR 3B IS NOT A FULL AND PERFECT COMPLY ACCORDING TO SECTION 39(1), READ WITH RULE 61(1). RULE 61(5) TALKS ABOUT GSTR 3B AND AFTER COMPLY OF SECTION 38(GSTR 2) THAT CAN BE ADJUSTED IN GSTR 3….. NOW SEC 38 IS NOT IN FORCE….. YOU HAVE TO GIVE REFERRANCE OF GUJRAT HIGH COURT JUDGEMENT…… THOUGH DEPT CAN DEMAND AT LEAST INTEREST ON NETT LIABILITY..
YOU HAVE TO PROVE- SECTION 49(8) DID NOT TALK ABOUT PAYMET’S TME LIMIT…… SECTION 39(7) TALKS ABOUT TAX SHOULD PAY WITHIN DUE DATE OF RETURN FILING U/S 39 AND PRESENTLY GSTR 3B IS NOT A RETURN FILING FORM…. SO WE ARE NOT FILING RETURN U/S 39…..
AS PER WORDINGS OF SECTION 50(1), WE HAVE TO PAY INTEREST IF TAX IS NOT PAID WITHIN THE PERIOD PRESCRIBED AND THAT PRESCRIBED TIME IS DUE DATE OF SEC 39(1)….. SO AS GSTR 3B IS NOT A COMPLY OF SECTION 39(1) THEN OUR DUE DATE OF TAX PAYMENT IS NOT OVER SO INTEREST U/S 50(1) CAN NOT BE LEVIED….