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CA Intermediate · Taxation · Returns

Sanjay Traders, a regular taxpayer in Indore, files GSTR-3B monthly. For the month of July, the due date for GSTR-3B was 20 August, but the return was actually filed on 30 August. Which statement about the consequence of the delay is correct?

Both late fee and interest apply. A late fee is charged per day of delay in filing GSTR-3B, and interest is payable on tax paid after the due date, generally computed on the net tax liability paid in cash rather than the part paid through input tax credit.

  1. ALate fee is payable for the delay, and interest is payable on any tax paid late, calculated on the net cash tax liabilityCorrect
  2. BNeither late fee nor interest is payable if the full tax is paid before filing
  3. COnly interest is payable; the law does not impose a late fee for GSTR-3B
  4. DOnly late fee is payable; interest is charged only for GSTR-1 delays

Explanation

Delay in furnishing GSTR-3B attracts a late fee for each day of default, and interest is charged on tax paid after the due date. Interest is computed on the portion of tax paid in cash (net liability), not on the portion discharged through ITC. Hence late fee and interest both apply, and the other statements ignore one of these levies.

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