According to an order of court in a state ITC can not be claimed if GSTR is filed after due date .
- Every person is liable to pay tax according to the provision of this ACT , but fails to pay the tax within the due date shall for the period for which the tax remains due , pay , on his own , interest @ 18% .. Interest will be paid on entire amount .
Explanation : As per existing system interest is not calculated automatically because GST return is filed on the basis of self assessement .
How to calculate interest :
For example ITC amount is Rs. 1000/- and Output Tax liability is Rs. 800/- In this case you need not pay tax . But you will have to pay interest on entire amount i.e. Rs. 800/- but not on net liability, if return is filed after prescribed date .
- Until the self assessed GST return is not filed, ITC is not updated in electronic credit ledger as a result you will not be entitled to adjust output tax liability with ITC .
- It will be shown in GST Annual return and GST Audit report if the amount of interest is paid from cash balance or total tax liability .
Conclusion : You will have to file GSTR before due date to utilize ITC . If GSTR is filed after due date you will have to pay interest on output tax liability without reducing the ITC .