Section 6.1 of GSTR – 3B, details of payment for GST has to be shown. Amount of Tax Payable, Amount of Tax paid under GST utilizing the ITC and balance amount in cash has to be shown along with interest and late if any payable for CGST, SGST, UTGST, IGST and Cess.
Notification No. 13/2017 – Central Tax, states the rate of interest to be paid or received by the taxpayers under CGST. The interest rate in case of delayed payment is 28%, reversal of input tax credit in case of a mismatch, ITC availed before supplier uploads the invoice the interest rate is 24%, in case of delayed refund the interest rate is 6% and in case of refund under adjudication process it is 9%.
As per the CGST Act, The time of supply for interest, late fee or penalty for delayed payment of any consideration is the date on which the payment is received by the supplier but not on the date on which the suppliers raises the debit note.
Input tax credit availed on provisional basis has to be reversed if the supplier has not paid the input tax credit along with interest for the period from the date of availing ITC to the reversal. The same be taken if the supplier pays the tax but in the new GST Law released looks like the interest paid will not be allowed to the recipient which means a cost.
The concerned officer who is approving the refund order may deduct the amount which is due to be paid to the applicant, if there are any amounts pending to the GST authorities in form of penalty or interest or late fee or any tax due and pay the balance amount if any remaining. The amount will be deducted only the same is not stayed by any court or tribunal.
Refund under GST can be claimed if there is balance in cash or in credit ledger after payment of tax, interest, penalty, fee or any other amounts payable under GST. Refund has to be filed online using the form FORM-GST-RFD-01.
In the Annual Return GSTR – 9, the taxpayer is also required to furnish information relating to other amounts payable to the department on the orders received by him. This information has to be shown in Section 8 of GSTR – 9, details of the order, tax payable, interest, penalty and status of the order.