M/s Seagull and Co. filed the GST return under section 39 for the month of December 2024 with a delay of 73 days. Total tax paid in the said return…

(i) The interest on delayed payment under section 50 payable in respect of supplies made and declared in the return for a tax period furnished after the due date is levied only on that portion of tax which is paid by debiting electronic cash ledger. Further, any amount credited to Electronic Cash Ledger on/before the due date of return and is later used/debited to pay tax while filing return after due date will not be considered (i.e. interest not to be paid on that amount) while calculating above interest provided said amount remained in the ledger from the due date until its debit while filing return. Accordingly, in the given case, interest payable under section 50 is: on 14,000 (₹ 60,000 - 40,000 - 6,000) Applicable rate of interest will be 18% Number of days of delay = 73 days = 14000 × 18% × 73/365 = 504 (252CGST +252 SGST) (ii) In case where return is filed after issue of notice under section 74A, the interest would be payable on total amount of tax of 60,000 that is paid from electronic cash ledger as well as from electronic credit ledger. However, amount lying in e-cash ledger on or before the due date of filing said return i.e.6,000 shall not be considered while calculating such interest (i.e. interest not to be paid on that amount). Accordingly, in the given case, interest payable under section 50 is: on 54,000 (₹ 60,000 - 6,000) = 54000 × 18% × 73/365 = 1,944 (972CGST and 972SGST)