GST

Recovery when interest stays unpaid

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Unpaid interest is a dues amount like tax. It can be demanded through notices and recovered under the recovery provisions, including from bank accounts.

Provisions

Sec 50(1), CGST Act 2017; Sec 73(1), CGST Act 2017; Sec 74A, CGST Act 2017

Analysis

Interest that is clearly payable on admitted tax, such as for a late return, may be recovered without a separate notice in some cases, as courts have held for self-assessed tax. For disputed tax, interest follows the outcome. Pay admitted interest promptly. Keep track through the electronic liability register.

Close

  1. Check the electronic liability register for interest dues.
  2. Pay admitted interest promptly.
  3. Dispute only where tax itself is disputed.
  4. Keep records of payments.

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