RATE OF INTEREST FOR FAILURE
TO PAY TAX AND INTEREST FOR DELAYED REFUNDS IN GST REGIME
UNDER INTEGRATED 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 IGST – Integrated Goods
and Services Tax Act, 2017 as shown below:
TABLE
Sl.No.
|
Section
|
Rate
of interest
|
(1)
|
(2)
|
(3)
|
1.
|
Section 20 of the Integrated Goods and Services Tax
Act, 2017 read with sub-section (1) of section 50 of the Central Goods and
Services Tax Act, 2017
|
18
%
|
2.
|
Section 20 of the Integrated Goods and Services Tax
Act, 2017 read with sub-section (3) of section 50 of the Central Goods and
Services Tax Act, 2017
|
24
%
|
3.
|
Section 20 of the Integrated Goods and Services Tax
Act, 2017 read with sub-section (12) of section 54 of the Central Goods and
Services Tax Act, 2017
|
6
%
|
4.
|
Section 20 of the Integrated Goods and Services Tax
Act, 2017 read with section 56 of the Central Goods and Services Tax Act,
2017
|
6
%
|
5.
|
Section 20 of the Integrated Goods and Services Tax
Act, 2017 read with proviso to section 56 of the Central Goods and Services
Tax Act, 2017
|
9
%
|
This notification shall come into force from the 1st
day of July, 2017.
NOTE: As per Section 19(2) of
the Integrated Goods and Services Tax Act, 2017, a registered person who has
paid central tax and State tax or Union Territory tax, as the case may be, on a
transaction considered by him to be an intra-State supply, but which is
subsequently held to be an inter-State supply, shall not be required to pay any
interest on the account of integrated tax payable.
To view the Government Notification please click the link given below:
http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-6-igst-tax-english.pdf
http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-6-igst-tax-english.pdf