Notification No. 06/2017 — Integrated Tax Explained

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Notification No. 06/2017 – Integrated Tax: Seeks to prescribe rate of interest under CGST Act, 2017

GST: [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R.….(E).- In exercise of the powers conferred by section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-sections (1) and (3) of section 50, sub-section (12) of section 54 and section 56 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby fixes the rate of interest per annum, for the purposes of the sections as specified in column (2) of the Table below, as mentioned in the corresponding entry in column (3) of the said Table.

Table

Serial Number	Section	Rate of interest (in per cent)
(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

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

(Dr. Sree Parvathy S.L.)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 06/2017 — Integrated Tax

Q1: What is Notification 06/2017 IGST?

Answer: It prescribes GST interest rates.
It defines rates for delayed payment, excess ITC, and refunds.

Q2: What is interest rate for late GST payment?

Answer: 18% per annum.
It applies from due date till payment.

Q3: What is rate for excess ITC?

Answer: 24% per annum.
Higher rate due to misuse of credit.

Q4: Is interest automatic?

Answer: Yes.
No notice is required for charging interest.

Q5: When does interest start?

Answer: From due date.
It continues till actual payment.

Q6: Is interest payable on gross or net tax?

Answer: Depends on situation.
Generally on net cash liability (subject to conditions).

Q7: What about refund delays?

Answer: Interest is payable.
6% or 9% depending on case.

Q8: Can interest be waived?

Answer: Generally no.
Only through special notifications.

Q9: Does interest apply to all taxpayers?

Answer: Yes.
Applicable to all registered persons.

Q10: Is it applicable to IGST also?

Answer: Yes.
Through Section 20 linkage.

Q11: How to calculate interest?

Answer: Based on days of delay.
Formula: Tax × Rate × Days / 365

Q12: What if mistake is corrected later?

Answer: Interest still applies.
Delay period is considered.

Q13: Can interest be disputed?

Answer: Rarely.
Only if calculation is wrong.

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