The new upcoming functionality in the GST portal is that, now no need to calculate interest while filing GSTR3B. Because it will be now calculated by system automatically.
INTEREST CALCULATOR IN GSTR-3B | INTEREST IN GSTR-3B
Introducing Interest calculator
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.
Interest computation
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 present tax-period and declared in the GSTR-3B for this period will be calculated only on that portion of the tax which is paid by debiting the electronic cash ledger, i.e., tax paid in cash. With respect to the liability pertaining to the previous tax-period(s), and paid in later GSTR-3B, the interest will be computed for the entire liability, whether paid by debiting the electronic cash ledger or electronic credit ledger.
Auto-population of system computed interest
This new functionality will compute the minimum interest applicable on the basis of the values declared by the taxpayers in GSTR-3B for a particular tax-period. This system computed interest will be auto-populated in Table-5.1 of GSTR-3B for the next tax-period, the way it is done for the Late fees at present.
The system computed interest values auto-populated in the next GSTR-3B return will be kept editable, initially. However, the system-generated PDF of filed GSTR-3B will contain both values: the System computed interest, and the user paid interest values.
Scenarios where interest is applicable
Interest liability can arise in cases of either of the following, or both :
Delayed filing of return: If the present GSTR-3B is filed after the ‘due date’, then interest will be applicable at prescribed rate of interest from the ‘due date’ of GSTR-3B for relevant period i.e. till the date of filing of the return.
Delayed declaration of liability: If the liability pertaining to previous tax-periods is discharged in the present GSTR-3B, then interest will be leviable from the ‘due date’ of return for the said previous period till the date of declaration of the liability in the return. Thus, as part of the interest calculator, a new feature has been provided to GSTR-3B for allowing taxpayers to voluntarily declare Tax-period wise break-up of liability. If a taxpayer is discharging liability for any past period(s) in the present GSTR3B, then exact tax-period wise break-up of the same can be provided by the taxpayers. The interest will be thereafter computed by the system accordingly.
Furnishing tax-period wise break-up in GSTR-3B
The return in FORM GSTR-3B, as it is now, allows taxpayers to discharge tax liability for previous tax-periods also, in addition to the tax liability for the present period. However, the tax-period wise break-up of the tax liability is not available in GSTR-3B. Thus, for computing the exact interest liability, the information regarding the tax-period wise break-up of the consolidated tax liability declared by the taxpayer would be required by the system.
In view of above, a new button has been added in GSTR-3B, called Tax Liability Breakup (Voluntary), and data is to be entered by clicking this button only by those taxpayers who are making payment for liability pertaining to earlier tax-periods in the present GSTR3B. In cases where the present GSTR-3B consists of liability only for the present period, the taxpayers can ignore this button, and continue filing their return as usual.
Changes in user experience
Taxpayers filing on or before Due date of GSTR-3B: After the interest calculator is enabled on the GST Portal, there will be no change in the user experience for the taxpayers who file their return on or before the ‘due date’. The taxpayer would still have the facility to provide the break-up of liability of the past period(s). For details of declaring tax-period wise tax liability, please refer to the Annexure.
Taxpayer filing GSTR-3B after Due date: For taxpayers who are filing after ‘due date’, a pop-up will be shown regarding the option to declare tax-period wise tax liability, if applicable to them. If they have any tax liability pertaining to any previous tax-period to declare, they may declare the same. If the entire liability pertains to the present period, then they may ignore this pop-up message, and continue their filing as usual. If no previous period tax liability is declared, by default the interest will be computed by assuming that the entire tax liability pertains to the present period.
This facilitation measure is expected to assist the taxpayers by helping them with calculation of correct interest while filing of GSTR-3B and will thus improve ease in filing return under GST.
This functionality will be made available on the GST Portal shortly, and the same will be intimated to the taxpayers. The details about functionality on computation of the interest, along with sample screenshots, is as per the Annexure.
Join EduTaxTuber Network for the Latest updates on Income Tax, GST, Company Law, Stock Market and other related subjects.
Also, read other articles @ EduTaxTuber
-
Notification No. 37/2021 Central Tax- Seeks to make amendments to the CGST Rules, 2017
-
Government to introduce a Bill to Regulate Crypto Currency: Private Cryptocurrency to be banned and RBI to issue new crypto
-
New AIS includes additional information relating to interest, dividend, securities transactions, mutual fund transactions, etc.
-
Important Income Tax Due Dates for November 2021
-
Important Income Tax Due Dates for October 2021
-
RBI to Impose Monetary penalty on Banks for Non-Availability of Cash in ATMs
-
How to Download ITR Acknowledgement from New e-filing Portal?
-
ICAI | Extension of the time period for admission in Foundation Course
-
What is e-RUPI? | The New Digital Payment
-
GST Annual Return & Audit (GSTR 9 & GSTR 9C) For FY 2020-21
-
CMA-Extension of time for submission of online Examination Application Form
-
FAQs – Filling of ITR forms for Assessment Year 2021-22
-
FAQs on Covid 19 Vaccination
-
How to Verify the PAN Details Online?
-
How to Download Covid 19 Vaccination Certificate?
-
Circular No. 2 of 2021- Clarification in respect of Residential Status
-
Case Study Digest at the Final level-ICAI
-
CBDT Issues Refunds to Taxpayers between 1.04.2020 to 28.02.2021
-
Post Office Saving Account | Now Maintaining Minimum Balance is Mandatory
-
Shortcut Key in Tally – Tally ERP & TallyPrime
-
Learn How to Create a Company in TallyPrime?
-
How to E-Verify ITR
-
How to Check Income Tax Refund Status -Online
-
How to download ITR form (Java/Excel)?
-
Goods and Service Tax-List of Central Tax Notifications 2020
-
Know All About TDS – Rates, Due Dates, Forms & Challans, etc.
-
What is Form 15G and 15H? ( How to avoid TDS on interest income)
-
LPG Cylinder Revised Rates from 1st April: Check City Wise Rates
-
Sancode Technologies Limited IPO: BSE SME IPO Details
-
PAN and Aadhar Linking Date Extended to 30th June 2023
-
Now View TDS or TCS Online on Mobile: AIS for Taxpayers Mobile App
-
How to Link Aadhar With PAN With Penalty Rs. 1000
-
NEET MDS Result 2023: Check NEET MDS Result Now
-
How to Find GST Rates: GST Rates for Goods & Services
-
GSTIN Advisory on opting for payment of tax under the forward charge mechanism by GTA
-
Watch Union Budget 2023 Live: Income Tax | GST
-
Union Budget 2023-24: Time and Schedule