GST: Interest on differential output liability declared in subsequent months

As per the GST law, if a registered person has declared a lower output tax liability in a particular tax period and subsequently discovers that the tax liability was higher than what was declared, then the person is required to pay the differential tax liability along with interest. The interest rate applicable is 18% per annum and is calculated from the date the tax was due to be paid till the date the differential tax liability is paid.

However, if the registered person voluntarily declares the differential tax liability and pays the same, then the interest liability is reduced to 9% per annum instead of 18%. This is known as "voluntary compliance" and is aimed at encouraging registered persons to voluntarily disclose and pay any tax liability that was inadvertently omitted.

It is important for registered persons to ensure that they declare and pay the correct tax liability at the time of filing their GST returns. In case of any discrepancies, the registered person should take steps to rectify the same in a timely manner to avoid any interest or penalty liability.

In conclusion, the interest on differential output liability declared in subsequent months is applicable at a rate of 18% per annum if the registered person does not voluntarily disclose and pay the differential tax liability. However, if the registered person voluntarily declares and pays the differential tax liability, then the interest liability is reduced to 9% per annum.

Provisions of sec 50 (1) regarding GST: Interest on differential output liability declared in subsequent months

Section 50(1) of the Central Goods and Services Tax (CGST) Act, 2017 provides for the interest to be charged on the amount of tax liability that is paid after the due date. This includes the interest on the differential output liability declared in subsequent months.

As per this section, if a registered person fails to pay the tax liability on the due date, they are required to pay interest on the outstanding amount from the due date until the date of payment. The interest rate is usually 18% per annum, and it is calculated on the amount of tax liability that is unpaid.

Therefore, if a registered person declares a lower output tax liability in a particular tax period and subsequently discovers that the tax liability was higher than what was declared, they are required to pay the differential tax liability along with interest at the rate of 18% per annum.

However, as I mentioned earlier, if the registered person voluntarily declares and pays the differential tax liability before the tax authority initiates any action, the interest liability is reduced to 9% per annum.

In conclusion, Section 50(1) of the CGST Act, 2017 provides for the interest on the differential output liability declared in subsequent months. It is important for registered persons to pay their tax liability on time and avoid any interest liability. If there are any discrepancies, they should be rectified in a timely manner to avoid any further interest or penalty liability.

Interest payable if the output liability of a tax period is declared in a later month’s GSTR3B

As per the GST law, a registered person is required to file their GSTR-3B return by the 20th of the following month. If a registered person declares their output tax liability in a later month's GSTR-3B return, they may be liable to pay interest on the unpaid tax liability.

As per Section 50(1) of the CGST Act, if a registered person fails to pay the tax liability on the due date, they are required to pay interest on the outstanding amount from the due date until the date of payment. The interest rate is usually 18% per annum, and it is calculated on the amount of tax liability that is unpaid.

Therefore, if a registered person declares their output tax liability in a later month's GSTR-3B return, they may be liable to pay interest on the unpaid tax liability from the due date until the date of payment. The interest rate applicable is usually 18% per annum, but if the registered person voluntarily declares and pays the tax liability before any action is taken by the tax authorities, the interest rate may be reduced to 9% per annum.

It is important for registered persons to file their GSTR-3B return by the due date and pay the tax liability on time to avoid any interest liability. If there are any discrepancies or errors, they should be rectified in a timely manner to avoid any further interest or penalty liability.