At the time of payment of GST the system asks for the type of payment like CGST, SGST, Interest, Fees and Penalty. My fried paid the late fee under column Penalty. The setoff was not successful and he learnt after a week that the late fee should have been paid under "Fees". After this he paid seperately under "fees" and filed his GSTR3B 7days late and because of this he had to pay additional 1400 towards late filing.
I wish to mention here that, the "CASH LEDGER" must be available like a vallet. and the need for specifying whether the payment being made is tax or interest or penalty or fees does not arise. He should have the freedom of utilising amount in the cash ledger for payment under all heads at the time of setting off liability. In the above case, the amount paid under Penalty is lying as Penalty and not available for set off under other heads
GST structure is not based on one tax, one nation as of now.
The money we pay goes to state government and central government both.
Remember there is no refund once you pay the tax money. So it will be difficult for center or state to pay back, you know how hard it is to get money back from government.
I think there should not be concept of SGST and CGST itself, at least at the payment level.
Many people made this mistake and are suffering with working capital crunch.
Join the largest Taxation Q&A platform on internet and ASK YOUR OWN question.Join Discussion