GST Network, which provides technology backbone for the indirect tax regime, will shortly release interest calculator functionality in monthly tax payment form GSTR-3B to help taxpayers in calculating interest for delayed tax payment.
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, GSTN said in an advisory. "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 a statutory compliance," it said. As per Goods and Services Tax law, 18 per cent interest is charged for failure to pay tax liability on time, while 24 per cent interest is levied for undue or excess claim of input tax credit (ITC) or reduction of output tax liability.
This functionality will be made available on the GST Portal shortly, the advisory said, adding it will improve ease in filing return. AMRG & Associates Senior Partner Rajat Mohan said, "this change will enhance the user experience by affording them the necessary tools to compute precise interest liability and enable authorities in a timely collection."