The Goods and Service Tax Networks (GSTN) notified the new functionality of interest calculator in GSTR-3B on GST Portal.
This functionality will facilitate & assist the taxpayers in doing self-assessment. This functionality will arrive at the system computed interest on the basis of the tax liability values declared by the taxpayers, along with the details about the period to which it pertains. The interest applicable, if any, will be computed after the filing of the said GSTR-3B and will be auto-populated in the Table-5.1 of the GSTR-3B of the next tax-period.
The facility would be similar to the collection of Late fees for GSTR-3B, filed after the Due date, posted in the next period’s GSTR-3B. This functionality will inform the taxpayers about the manner of system computed interest for each tax-head and hence will assist the taxpayers in doing correct computation of interest for the tax liability of any past period declared in the GSTR-3B for the current tax period.
The interest computed by the system has been aligned with the Section-50 of the CGST Act, 2017, as amended. Consequently, interest liability for respect of supplies made during the tax-period pertaining to the GSTR-3B being filed will be calculated only on that portion of the tax which is paid by debiting the electronic cash ledger, i.e., net tax paid in cash. However, with respect to the supplies pertaining to the previous tax- period(s) being declared in later GSTR-3B, the interest will be computed for the entire liability.
The GSTN with the object to facilitate taxpayers in doing self-assessment, the new functionality of interest calculator is being released in GSTR-3B. This functionality will assist taxpayers in calculating the interest applicable for delayed filing of returns. Taxpayers will have to verify and discharge the correct interest liability as per law, as payment of interest is a statutory compliance.
The functionality will further improve ease of filing returns under GST and is, therefore, in the direction of further reducing the compliance burden for taxpayers.
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