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CA Final · Indirect Tax Laws · Payment of Tax

Nilgiri Foods Ltd files a delayed GSTR-3B for April and discharges output tax of Rs 5,00,000 by debiting Rs 2,00,000 from the electronic credit ledger and Rs 3,00,000 from the electronic cash ledger. Of the cash ledger debit, Rs 1,10,000 had been deposited on or before the due date and remained in the ledger until debited at filing; the rest was deposited after the due date. No proceedings have begun. On what amount is interest for the delay computed under Rule 88B(1) and its proviso?

Interest is computed on Rs 1,90,000. The base is the Rs 3,00,000 paid from the cash ledger, less Rs 1,10,000 that was deposited on or before the due date and stayed in the ledger until debited, which the proviso to Rule 88B(1) excludes.

  1. ARs 1,90,000Correct
  2. BRs 3,00,000
  3. CRs 5,00,000
  4. DRs 1,10,000

Explanation

Interest is on the cash-ledger portion of Rs 3,00,000. The proviso excludes the amount credited on or before the due date and lying in the ledger until debited, namely Rs 1,10,000. So the base is 3,00,000 - 1,10,000 = Rs 1,90,000. Rs 3,00,000 ignores the proviso, and Rs 1,10,000 is the excluded amount itself.

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