In order to ease the calculation of self-assessment done by the taxpayers, the GSTN has now introduced the new functionality of calculating the Interest part in the GSTR-3B. The purpose behind the introduction of the interest calculator is to assist the registered taxpayers in determining the interest component due to the following reasons:
- Delay in filing their GST Return; and
- Delay in reporting of the Tax liability.
Section 50 of the CGST Act 2017 states the determination of the interest component under GST and the newly introduced functionality is aligned with the said section.
- Interest calculation for the current tax period
The determination of the tax liability in respect to the supplies made during the current tax period and declared the same in the GSTR-3B will be calculated only on that portion of the tax that has been paid by debiting the electronic cash ledger i.e., the tax paid in cash.
- Interest computation for the previous tax period(s)
Any liability declared in the current period that pertains to the previous tax period(s) and the same is paid in later GSTR-3B, in that scenario the interest is to be determined for the entire liability irrespective of whether it is paid by debiting the electronic cash ledger or by electronic credit ledger.
In order to determine the interest component on the tax liability of the previous tax period, a new tab has been inserted namely “Tax Liability Break-up” so that the taxpayer can bifurcate the exact amount of liability pertaining to the previous tax period and the current tax period.
In the current scenario, the auto-populated late fee gets displayed in the subsequent tax period GSTR-3B in Table 5.1 likewise from now onwards taxpayers can see the auto-populated computed interest value in Table 5.1 of GSTR-3B in the subsequent tax period. However, the interest value will be kept editable by the system for the initial period.
Taxpayers can able to see the system computed interest value along with the interest paid (if any) in their respective system generated GSTR-3B.