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Soon, GSTR-3B to contain interest calculator for delayed tax payment – Mint

The Goods and Services Tax Network is planning to release an interest calculator functionality in monthly tax payment form GSTR-3B to help taxpayers in calculating interest for delayed tax payment, reported news agency PTI.

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, said GSTN, which provides the technology backbone for the indirect tax regime

“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 statutory compliance,” it said.

This functionality will be made available on the GST Portal shortly, the advisory said, adding it will improve ease in filing returns.

As per Goods and Services Tax law, 18% interest is charged for failure to pay tax liability on time, while 24% interest is levied for an undue or excess claim of input tax credit (ITC) or reduction of output tax liability.

Changes in GST law 

Meanwhile, apex indirect tax body CBIC recently said that tax officers will give reasonable time to erring business to explain reasons for mismatch in turnover reported in sales return GSTR-1 and tax payment form 3B before initiating recovery action for short payment or non-payment of taxes.

As per the changes in the GST law effective January 1, GST officers were allowed to directly initiate recovery action against those errant businesses which showed higher sales in monthly return GSTR-1 but under-report it while tax payment in GSTR-3B.

The move was aimed at curbing the menace of fake billing whereby sellers would show higher sales in GSTR-1 to enable a purchaser to claim an input tax credit (ITC) but report suppressed sales in GSTR-3B to lower GST liability.

So far, under the goods and services tax law, show-cause notices were first issued and then a recovery process was initiated in such cases of mismatch in GSTR-1 and GSTR-3B.

Following doubts raised by the trade and the field formations regarding modalities for initiation of the recovery proceedings, the Central Board of Indirect Taxes and Customs (CBIC) on 7 January issued guidelines, saying that an opportunity needs to be provided to the concerned businesses for short payment or non-payment of the amount of self-assessed tax liability.

It noted that in some cases there may be a genuine reason for the difference between the details of outward supplies declared in GSTR-1 and those declared in GSTR-3B.


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