Find
Interest under Sec 50(1) is 18 percent a year from the original due date of the tax till payment. For wrongly availed ITC, interest under Sec 50(3) runs only from the date it was utilised.
GST
Computing interest on a DRC-01A amount
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Provisions
Sec 50(1), CGST Act 2017; Sec 50(3), CGST Act 2017; Rule 88B, CGST Rules 2017
Analysis
For short payment of ₹1,00,000 due on 20 July 2023 and paid on 20 July 2026, three years of interest at 18 percent is about ₹54,000. For excess ITC, check whether your credit ledger balance actually fell below the excess; if not, interest may be nil. Officers sometimes compute interest on the full period without checking utilisation. Recompute before paying.
Close
- List each amount with its original due date.
- Compute 18 percent interest day-wise to the payment date.
- For ITC items, check utilisation under Rule 88B(3).
- Compare with the officer's figure and explain differences.
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