Central Goods and Services Tax Act, 2017
Chapter X - Payment of Tax
Section 50 - Interest on delayed payment of tax
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 notified 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 4[or section 74A]4 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
(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[(3) Where the input tax credit has been wrongly availed and utilised, the registered person shall pay interest on such input tax credit wrongly availed and utilised, at such rate not exceeding twenty-four per cent. as may be notified by the Government, on the recommendations of the Council, and the interest shall be calculated, in such manner as may be prescribed]3
1. Inserted (w.e.f. 01.09.2020 vide Notification No. 63/2020–Central Tax dated 25.08.2020) vide Section 100 of the Finance (No. 2) Act, 2019.
2. Substituted (w.e.f. 01.07.2017) vide Section 112 of the Finance Act, 2021 dated 28.03.2021 for
1[“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.]1"
Brought into force on 1st June, 2021 vide Notification No. 16/2021-Central Tax dated 01.06.2021.
3. Substituted (w.e.f. 01.07.2017 brought into force w.e.f. 05-07-2022 vide Notification No. 9/2022-Central Tax, dated 05.07.2022) vide Section 111 of the Finance Act 2022 dated 30.03.2022 for
"(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 notified by the Government on the recommendations of the Council."
4. Inserted (w.e.f. 01-11-2024) vide Section 126 of the Finance Act (No.2), 2024 dated 16-08-2024.
Act
- Section 42 - Omitted
- Section 51 - Tax deduction at source
- Section 52 - Collection of tax at source
- Section 60 - Provisional assessment
- Section 62 - Assessment of non-filers of returns
- Section 73 - Determination of tax, pertaining to the period upto Financial Year 2023 24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any willful-misstatement or suppression of facts
- Section 74 - Determination of tax, pertaining to the period up to Financial Year 2023 24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any willful-misstatement or suppression of facts
- Section 80 - Payment of tax and other amount in instalments
- Section 108 - Powers of Revisional Authority
- Section 101A - Constitution of National Appellate Authority for Advance Ruling
- Section 43 - Omitted
Rules
- Rule 37 - Reversal of input tax credit in the case of non-payment of consideration
- Rule 42 - Manner of determination of input tax credit in respect of inputs or input services and reversal thereof
- Rule 85 - Electronic Liability Register.
- Rule 88B - Manner of calculating interest on delayed payment of tax.
- Rule 96A - Export of goods or services under bond or Letter of Undertaking
Notifications
- Notification No. 06/2017 - 19-06-2017 - Modes of verification under CGST Rules, 2017
- Notification No. 09/2017 - 28-06-2017 - Seeks to bring into force certain sections of the CGST Act, 2017 w.e.f 01.07.2017
- Notification No. 13/2017 - 28-06-2017 - Seeks to prescribe rate of interest under CGST Act, 2017
- Notification No. 10/2017 - 30-06-2017 - Notifies Fixing of rate of interest per annum
- Notification No. 31/2020 - 03-04-2020 - Seeks to provide relief by conditional lowering of interest rate for tax periods of February, 2020 to April, 2020.
- Notification No. 35/2020 - 03-04-2020 - Seeks to extend due date of compliance which falls during the period from "20.03.2020 to 29.06.2020" till 30.06.2020 and to extend validity of e-way bills.
- Notification No. 01/2020 - 08-04-2020 - Seeks to provide relief by conditional lowering of interest rate for tax periods of February, 2020 to April, 2020.
- Notification No. 03/2020 - 08-04-2020 - Seeks to provide relief by conditional lowering of interest rate for tax periods of February, 2020 to April, 2020.
- Notification No. 02/2020 - 24-06-2020 - Seeks to provide relief by lowering of interest rate for a prescribed time for tax periods from February, 2020 to July, 2020.
- Notification No. 05/2020 - 24-06-2020 - Seeks to provide relief by lowering of interest rate for a prescribed time for tax periods from February, 2020 to July, 2020.
- Notification No. 51/2020 - 24-06-2020 - Seeks to provide relief by lowering of interest rate for a prescribed time for tax periods from February, 2020 to July, 2020.
- Notification No. 01/2021 - 01-05-2021 - Seeks to provide relief by lowering of interest rate for the month of March and April, 2021
- Notification No. 01/2021 - 01-05-2021 - Seeks to provide relief by lowering of interest rate for the month of March and April, 2021
- Notification No. 08/2021 - 01-05-2021 - Seeks to provide relief by lowering of interest rate for the month of March and April, 2021
- Notification No. 14/2021 - 01-05-2021 - Seeks to extend specified compliances falling between 15.04.2021 to 30.05.2021 till 31.05.2021 in exercise of powers under section 168A of CGST Act.
- Notification No. 02/2021 - 01-06-2021 - Seeks to provide relief by lowering of interest rate for a specified time for tax periods March, 2021 to May, 2021.
- Notification No. 02/2021 - 01-06-2021 - Seeks to provide relief by lowering of interest rate for a specified time for tax periods March, 2021 to May, 2021.
- Notification No. 18/2021 - 01-06-2021 - Seeks to provide relief by lowering of interest rate for a specified time for tax periods March, 2021 to May, 2021.
- Notification No. 08/2022 - 07-06-2022 - Seeks to provide waiver of interest for specified electronic commerce operators for specified tax periods
- Notification No. 09/2022 - 05-07-2022 - Seeks to notify the provisions of clause (c) of section 110 and section 111 of the Finance Act, 2022
- Notification No. 07/2024 - 08-04-2024 - Seeks to provide waiver of interest for specified registered persons for specified tax periods
- Notification No. 06/2017 - 28-06-2017 - Seeks to prescribe rate of interest under CGST Act, 2017
