Currently, interest calculation on delayed GST payment is on the basis of gross tax liability. This was upheld in the Telangana High Court’s decision dated 18.04.2019. But recently, the Central Board of Indirect Taxes and Customs (CBIC) had said that taxpayers who have filed their returns in GSTR-3B Form are required to pay interest on the total amount of tax liability shown in the form. The Board has already asked all the Principal Chief Commissioners and Chief Commissioners of Central Tax to start the field formations under their jurisdiction for making recovery of applicable interest from the identified taxpayers.
https://www.taxscan.in/interest-delayed-gst-payment-calculated-gross-tax-liability-cbic/49126/
