CGST Section 50 – Interest on Delayed Payment of Tax [Updated 2019]

CGST Section 50 – Interest on delayed payment of tax

CGST Section 50 (1)

Every person who is liable to pay tax in accordance with the provisions of this Act or the Rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified1 by the Government on the recommendations of the Council.

CGST Section 50 (2)

The interest under sub-section (1) shall be calculated, in such manner as may be prescribed, from the day succeeding the day on which such tax was due to be paid.

Central Government has notified the rate of interest of 18% p.a. through Notification No. 13/2017 – Central Tax, dt 28-06-2017, corresponding N/N 6/2017 of IGST Act, and N/N 10/2017 of UTGST Act dated 30.06.2017, enforceable from 01-07-2017.

CGST Section 50 (3)

A taxable person who makes an undue or excess claim of input tax credit under sub-section (10) of section 42 or undue or excess reduction in output tax liability under Sub-Section (10) of section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four per cent., as may be notified2 by the Government on the recommendations of the Council.

Central Government has notified the rate of interest of 24% p.a. through Notification No. 13/2017 – Central Tax, dt 28-06-2017 and corresponding N/N 6/2017 of IGST Act, enforceable from 01-07-2017

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