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Section 50

The Central Goods & Services Tax Act, 2017 outlines the provisions for interest on delayed tax payments, with a maximum rate of eighteen percent for unpaid taxes. Taxable persons who make undue claims for input tax credit or excess reductions in output tax liability may incur interest at a rate not exceeding twenty-four percent. Interest is calculated from the day following the due date of tax payment.

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81 views1 page

Section 50

The Central Goods & Services Tax Act, 2017 outlines the provisions for interest on delayed tax payments, with a maximum rate of eighteen percent for unpaid taxes. Taxable persons who make undue claims for input tax credit or excess reductions in output tax liability may incur interest at a rate not exceeding twenty-four percent. Interest is calculated from the day following the due date of tax payment.

Uploaded by

AKSHAT KUMAR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Central Goods & Services Tax Act, 2017

Section 50 : Interest on delayed payment of tax


(1) Every person who is liable to pay tax in accordance with the provisions of
this Act or the rules made thereunder, but fails to pay the tax or any part
thereof to the Government within the period prescribed, shall for the period
for which the tax or any part thereof remains unpaid, pay, on his own,
interest at such rate, not exceeding eighteen per cent., as may be 1notified by
the Government on the recommendations of the Council.
2[Provided that the interest on tax payable in respect of supplies made
during a tax period and declared in the return for the said period
furnished after the due date in accordance with the provisions of section
39, except where such return is furnished after commencement of any
proceedings under section 73 or section 74 in respect of the said period,
shall be levied on that portion of the tax that is paid by debiting the
electronic cash ledger.]
(2) The interest under sub-section (1) shall be calculated, in such manner as
may be prescribed, from the day succeeding the day on which such tax was
due to be paid.
(3) A taxable person who makes an undue or excess claim of input tax credit
under sub-section (10) of section 42 or undue or excess reduction in output
tax liability under sub-section (10) of section 43, shall pay interest on such
undue or excess claim or on such undue or excess reduction, as the case
may be, at such rate not exceeding twenty-four per cent., as may be
3notified by the Government on the recommendations of the Council.

1 Notified Rate of Interest 18% vide Notification No. 13/2017 - Central Tax Dt.
28/06/2017; wef 01/07/2017.
2 Inserted vide FINANCE (NO. 2) ACT, 2019 w.e.f. ………….
3 Notified Rate of Interest 24% vide Notification No. 13/2017 - Central Tax Dt.
28/06/2017; wef 01/07/2017.

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