Soon GSTR-3B will contain an interest calculator for tax deferred payment
The Goods and Services Tax Network plans to release an interest calculation feature in the GSTR-3B monthly tax payment form to help taxpayers calculate interest for the delayed tax payment, the report said. Press Agency PTI.
This new feature will calculate the applicable minimum interest based on the values declared by taxpayers in GSTR-3B for a particular tax period, said GSTN, which provides the technology backbone for the indirect tax regime.
“To facilitate the self-assessment of taxpayers, the new functionality of the interest calculator is published in GSTR-3B. This feature will help taxpayers calculate the applicable interest in the event of late filing. Taxpayers will have to verify and pay the correct interest. responsibility in accordance with the law, because the payment of interest is in accordance with the law, ”he said.
This feature will soon be available on the GST portal, according to the notice, adding that it will improve the ease of filing returns.
In accordance with the Goods and Services Tax Act, 18% interest is charged for non-payment of tax payable on time, while 24% interest is charged for undue or excess demand input tax credit (ITC) or product tax reduction.
GST Law Amendments
Meanwhile, the indirect tax body CBIC recently said that tax officials will give a reasonable period of time to erring companies to explain the reasons for the inadequacy of the turnover reported in the GSTR-1 sales statement and the tax payment form 3B before initiating recovery action for insufficient or non-payment of taxes.
Pursuant to changes to the GST law effective January 1, GST agents were allowed to directly initiate collection action against stray businesses that had higher sales in the GSTR-1 monthly return but underreported when paying tax in GSTR-3B.
The move was intended to reduce the threat of false invoicing where sellers would post higher sales in GSTR-1 to allow a buyer to claim an input tax credit (ITC) but report suppressed sales in GSTR-1. 3B to reduce GST liability.
So far, under the Goods and Services Tax Act, show cause notices have been issued first and then a recovery process has been initiated in such cases of mismatch in GSTR-1 and GSTR-3B.
Following doubts raised by trade and training in the field regarding the modalities of opening the recovery procedure, the Central Council of Indirect Taxes and Customs (CBIC) published on January 7 guidelines indicating that an opportunity must be offered to companies concerned in the short term payment or non-payment of the amount of tax payable by self-assessment.
He noted that in some cases there may be a real reason for the difference between the details of outbound deliveries reported in GSTR-1 and those reported in GSTR-3B.
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