GST
Interest on tax paid one day late
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Facts
Yes. Interest under Sec 50 has no minimum or grace period. Even one day of delay creates interest.
Provisions and law
- Sec 50(1), CGST Act 2017Interest is payable on tax paid late for the period of delay at the notified rate (18 percent a year); on a late return it is levied only on the portion paid in cash, except where proceedings under Sec 73, 74 or 74A have started.
Analysis
On ₹1,00,000, one day of interest at 18 percent is about ₹49. The portal may show it as system-computed interest in the next return. Pay it to keep your ledger clean, since unpaid interest can lead to recovery steps. Pay tax a day or two before the due date to be safe.
Conclusion
- Compute interest for the one day.
- Pay it in the next return or DRC-03.
- Check the system figure in Table 5.1.
- Pay earlier in future.
A Savvy can do this for you
Interest on late tax payment, Sec 50
₹999
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