CGST Rate of interest for failure to pay tax and delayed refunds from 1.7.2017 in India

RATE OF INTEREST FOR FAILURE TO PAY TAX AND INTEREST FOR DELAYED REFUNDS IN GST REGIME

UNDER CENTRAL GOODS AND SERVICES TAX ACT, 2017

The Goods and Services Tax Act, 2017 came into force with effect from 1.7.2017 in India.

The Government of India has announced the rate of interest for failure pay tax on the due dates and also announced the rate of interest on refunds delayed etc under the CGST – Central Goods and Services Tax Act, 2017 as shown below:

TABLE

Sl.No.	Section	Rate of interest
(1)	(2)	(3)
1.	Sec.50(1) – Failure to pay tax	18 %
2.	Sec.50(3) – Less tax paid / excess                     ITC availed	24 %
3.	Sec.54(12)- Interest on refunds                    withheld in an appeal                     later given	6 %
4.	Sec.56 -  Interest on delayed                refunds	6 %
5.	Proviso to Section 56 – Interest on refunds ordered in an appeal	9 %

        This notification shall come into force from the 1^st day of July, 2017.

To view the Government Notification please click the link given below: 

http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-13-central-tax-english.pdf