THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
PAYMENT OF TAX
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 there under, 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
in respect of the said period, shall be payable on that portion of the tax which
is paid by debiting the
electronic cash ledger
]
[helldod old[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.]] helldod]
(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.]
[helldod old[(3) A
taxable person
who makes an undue or excess claim of input tax credit
under subsection (10) of section 42 or undue or excess reduction in
output tax
liability under subsection (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.] helldod]
1. Inserted Vide:-Section 100 of Finance Act 2019 wef 01.09.2020 vide Notification No. 63/2020–Central Tax dt. 25.08.2020
2. Substituted Vide:-Section 112 of Finance Act 2021 wef 01.07.2017 vide Notification No. 16/2021–Central Tax dt. 01.06.2021
3. Substituted Vide: Section 111 of Finance Act 2022 wef 01.07.2017 vide Notification No. 09/2022 - Central Tax dt. 05.07.2022