Find
Interest under Sec 50(1) is 18 percent a year on tax paid after the due date, for the number of days of delay. The rate is notified in Notification 13/2017-CT.
GST
GST interest rate on late tax payment
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Provisions
Sec 50(1), CGST Act 2017; Notification 13/2017-CT
Analysis
If ₹50,000 tax due on 20 June is paid on 10 July, the delay is 20 days. Interest is ₹50,000 × 18 percent × 20/365, which is about ₹493. Interest is paid in cash, with the return or through DRC-03. It applies in addition to any late fee for the return.
Close
- Find the due date of the return.
- Count days of delay till the payment date.
- Compute 18 percent interest day-wise.
- Pay it in cash with the return.
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