Goods and Services Tax (GST) Network is set to release shortly an interest calculator functionality in monthly tax payment form GSTR-3B to help taxpayers in calculating interest for delayed tax payment, GSTN said in an advisory.
“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,” it further added.
According to GST law, in case of failure to pay tax liability on time, 18 percent interest is charged. Whereas, in case of undue or excess claim of input tax credit (ITC) or reduction of output tax liability, 24 per cent interest is levied.
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. It will be made available on the GST Portal shortly, the advisory said, adding it will improve ease in filing return.