The GST Network, which provides technology backbone for the indirect tax regime, will soon release interest calculator functionality in monthly tax payment form GSTR-3 B to help taxpayers calculate interest for delayed tax payment. This new function will compute the minimum interest applicable on the basis of the values declared by the taxpayers in GSTR 3 B for a particular tax period, GSTN said in an advisory.
The new functionality of interest calculator is going to be released in GSTR 3 B to facilitate taxpayers in doing self-assessment. This function will help taxpayers calculate the interest applicable for late filing of returns. The payment of interest is a statutory compliance, so taxpayers will have to verify and discharge the correct interest liability, as per law.
In 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 any excess claim of input tax credit ITC or reduction of output tax liability.
The advisory said that it will be easier to file returns on the GST Portal soon.
AMRG Associates Senior Partner Rajat Mohan said the change will enhance user experience by giving them the tools to compute precise interest liability and enable authorities in a timely collection. 29 lakh crore are in the top 30 lakh crores.