Interest being compensatory in nature, it is mandatory. Further, Section 50 uses the word ‘shall’ which also indicates that interest is mandatory.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST PENALTY AND OTHER AMOUNTS: FAQ NO. 37)
There is no specific provision for interest under IGST Act, does this mean interest is not applicable for delay in payment of IGST
No, provision of Section 50 of the CGST Act has been made applicable to IGST Act vide miscellaneous provision contained in section 20 of the IGST Act.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 36)
If there is default in payment of tax and filing of returns, interest is payable on gross tax payable or net tax payable
Gross tax payable, if there is default in payment of tax and filing of returns, input tax credit will become ineligible as per Section 16(2) of the CGST Act. Therefore, the taxable person will not be allowed claim set-off of input tax credit for calculation of interest.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 35)
What are the provisions in relation to interest under GST
Interest is applicable on delayed payment of tax at the rate to be notified (not exceeding 18%) and on undue or excess claim of input tax credit or on undue or excess reduction of output tax liability at the rate to be notified (not exceeding 24%), calculated from the from the day succeeding the day on which such tax was due to be paid Interest is applicable in case of undue or excess claim of input tax credit as well (Section 50).
(ICAI FAQ PUBLICATIONS 06-09-2017 INTEREST ON DELAYED PAYMENT OF TAX: FAQ NO. 34)
Should a taxable person maintain any minimum balance in the electronic cash ledger
There are no provisions in the GST Acts or rules which prescribes maintenance of minimum balance in the electronic cash ledger.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 33)
How do we ensure that SGST is paid to the appropriate State Government
There is a specific column in FORM GST PMT-06, wherein the Name of the state will be auto-populated/selected at the time of filling the challan to ensure that SGST is paid to the appropriate state government.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 32)
Is HSN code for goods or accounting code for service relevant for payment of tax
The format of challan does not contain column to disclose the HSN code or the accounting code, therefore, it is not relevant for payment of tax.
9ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 31)
Should the challan be apportioned against a fixed tax period or can be used against any liability of a taxable person
The challan for payment of tax (FORM GST PMT-06) does not collect details of the period for which the deposit of tax is made and any amount deposited through the challan is debited to the electronic credit ledger, from which the amount can be utilized against any liability.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 30)
What is the due date for payment of tax under GST
As per section 37(7), every registered taxable person, who is required to furnish a return shall pay to the account of the appropriate Government the tax due as per such return not later than the last date on which he is required to furnish such return. Therefore, the due date for payment of tax shall be the due date for filing of returns.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 29)
Can one pay CGST, IGST, UTGST and SGST together or should be paid separately in different challans
FORM GST PMT-06 contains separate columns for CGST, IGST, UTGST and SGST which shall deposit the amount to the respective account of the government though paid through a single challan, therefore, CGST, IGST, UTGST and SGST can be paid together in a single challan.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 28)