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Interest runs from the day after the due date until the date of payment. The due date for monthly GSTR-3B is the 20th of the next month, and the 22nd or 24th for quarterly filers depending on the State.
GST
How many days of delay to count for interest
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Provisions
Sec 50(1), CGST Act 2017; Sec 39(7), CGST Act 2017
Analysis
For tax due on 20 August paid on 25 August, interest is for 5 days. The date of payment is the date the cash is debited for the return, or the date credited to the cash ledger if it stayed there under Rule 88B. Use 365 days for the year. Small delays still create interest, but amounts are modest.
Close
- Identify the correct due date for your filing type.
- Count days after the due date till payment.
- Compute interest at 18 percent per 365 days.
- Pay with the return.
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