Mahima Ltd. has belatedly filed GST return (under section 39 of the CGST Act, 2017) for the month of January after 60 days from the due date for…

Proviso to section 50 of the CGST Act, 2017 lays down that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39 of the CGST Act, 2017, except where such return is furnished after commencement of any proceedings under section 73 or section 74 of the CGST Act, 2017 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger. In the given scenario, Mahima Ltd. has filed its return belatedly and as per the above provisions, interest is payable on the tax component paid through Electronic Cash Ledger only. A point relevant to note here is that tax payable on reverse charge basis also carries interest for the period of delay in remittance of tax and input tax credit cannot be used to pay the same (i.e. tax payable under reverse charge has to be paid in cash). Accordingly, interest under section 50 payable for the tax paid through Electronic Cash Ledger is computed as below: IGST: 218,000 *18%*60/365 = 6,450 CGST: 262,000*18%*60/365 = 7,752 SGST: 262,000*18%*60/365 = 7,752 Further, if entire tax payable for January is paid through Electronic Credit ledger, except for the taxes to be paid under reverse charge basis, then interest under section 50 of the CGST Act, 2017 is applicable only on the remittance of tax under reverse charge basis and not for tax payable on forward charge basis. Interest payable is given as below: IGST: 18,000 * 18% * 60/365 = 533 (rounded off) CGST: 32,000 * 18% * 60/365 = 947 (rounded off) SGST: 32,000 * 18% * 60/365 = 947 (rounded off)