Interest Calculator in GSTR-3B

As we know new functionality of Interest Calculator is being released in GSTR-3B.

How it will help taxpayers let us discuss:

This new functionality will assist taxpayers in calculating the interest applicable for delay filling of returns.

Interest computation-

Now, there will be two cases-

• Interest liability for supplies made during the present tax period.
• Interest liability for supplies pertaining to previous tax periods.

In first case, Interest liability will be computed only to that portion of tax which is paid by debiting the electronic cash ledger.

In second case, Interest will be computed for entire tax liability whether paid in cash or electronic credit ledger.

Where auto-population of Interest shown in GSTR-3B-

System computed interest will be auto-populated in Table 5.1 of GSTR-3B for next tax period –exactly same for late fees…

But important point is that system computed interest will be editable –if you do not agree with system computed interest, it can be edited.

Now next question when interest is to be paid-

Again there are two scenarios-

1. Delay filling of return- Gstr-3b filed for present tax period after due date then interest will be applicable at prescribed rate of interest from due date of GSTR-3B till the date of filling the return.

2. Delayed declaration of liability- If liability pertaining to previous tax periods then the interest will be leviable from due date of previous tax period till date of declaration of liability in Gst return but if taxpayer is discharging liability for any past periods then exact tax period wise break up can be provided by taxpayers.

Now, Furnishing tax-period wise break up in GSTR-3B- New button has been added in GSTR-3B called tax liability break up-only for those taxpayers who are making payment for earlier tax periods in present GSTR-3B, If no  previous tax period liability declared  then it will be assumed that entire tax liability pertains to present tax period.

To sum up- New functionality added really helpful to taxpayers but keep in mind system computed interest will be editable and taxpayers has to keep in mind the provisions of Section 50 of CGST ACT 2017 ,So interest will be calculated as per amended provisions on net cash basis …

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