Important Keyword: Notification 10/2017 UTGST, GST interest rate notification, UTGST delayed payment interest, GST 18 percent interest, GST 24 percent ITC interest, GST refund interest rate, Section 50 GST interest, CBIC GST interest notification, GST delayed refund interest, UTGST compliance India,
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[F. No. S-31011/25/2017-ST-I-DOR]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 30th June, 2017
9 Ashadha, Saka 1939
Notification No. 10/2017 – Union Territory Tax: Notifies Fixing of rate of interest per annum
Table of Contents
[To be published in the Official Gazette of India, Extraordinary, Part II, Section 3, Subsection (i)]
G.S.R.….(E).- In pursuance of section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), read with sub-sections (1) and (3) of section 50, sub-section (12) of section 54 and section 56 of Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of Goods and Services Tax 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, namely:-
Table
| Serial Number | Section | Rate of interest |
| (1) | (2) | (3) |
| 1. | Section 21 of the Union Territory Goods and Services Tax Act, 2017 read with sub-section (1) of section 50 of the Central Goods and Services Tax Act, 2017. | 18 per cent. |
| 2. | Section 21 of the Union Territory Goods and Services Tax Act, 2017 read with sub-section (3) of section 50 of the Central Goods and Services Tax Act, 2017. | 24 per cent. |
| 3. | Section 21 of the Union Territory Goods and Services Tax Act, 2017 read with sub-section (12) of section 54 of the Central Goods and Services Tax Act, 2017. | 6 per cent. |
| 4. | Section 21 of the Union Territory Goods and Services Tax Act, 2017 read with section 56 of the Central Goods and Services Tax Act, 2017. | 6 per cent. |
| 5. | Section 21 of the Union Territory Goods and Services Tax Act, 2017 read with Proviso to section 56 of the Central Goods and Services Tax Act, 2017. | 9 per cent. |
2. This notification shall come into force with effect from the 1st day of July, 2017.
(S.R. MEENA)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 10/2017 - Union Territory Tax
Q1: What is Notification No. 10/2017 – Union Territory Tax?
Answer: It is a GST notification prescribing interest rates under UTGST law.
The notification fixes interest rates for delayed tax payment, wrongful ITC claims, and delayed refunds.
Q2: What is the GST interest rate for delayed tax payment?
Answer: The rate is 18% per annum.
This applies when GST liability is paid after the due date.
Q3: What is the GST interest rate for wrongful ITC claims?
Answer: Wrongful ITC claims attract 24% interest.
This is the highest interest rate prescribed under this notification.
Q4: Why is the ITC interest rate higher?
Answer: The higher rate discourages misuse of Input Tax Credit.
GST systems heavily depend on proper ITC compliance.
Q5: What interest applies on delayed GST refunds?
Answer: Normally 6% interest applies.
This compensates taxpayers when refunds are delayed beyond prescribed timelines.
Q6: When does 9% refund interest apply?
Answer: It applies in certain special refund situations under the proviso to Section 56.
Usually these involve appellate or adjudication-related refund delays.
Q7: Is GST interest automatic?
Answer: Yes, generally GST interest is automatic.
It usually applies even without issuance of a notice.
Q8: Does delayed GSTR-3B filing attract interest?
Answer: Yes.
If tax payment is delayed along with return filing, interest liability arises.
Q9: Can GST interest be waived?
Answer: Normally no, unless the Government issues specific relief notifications.
Interest is treated as compensatory in nature.
Q10: Does mere ITC availment attract 24% interest?
Answer: Not always.
Practical disputes often depend on whether the ITC was wrongly utilised.
Q11: From when did this notification become effective?
Answer: The notification became effective from 1 July 2017.
This aligned with GST implementation.
Q12: Which law governs GST interest provisions?
Answer: GST interest provisions arise from both UTGST and CGST laws.
Section 50 of CGST Act plays a major role.
Q13: Why do businesses face high GST interest liability?
Answer: Common reasons include delayed filing, poor reconciliation, and incorrect ITC claims.
Interest can accumulate quietly over time.
Q14: Is professional GST reconciliation useful?
Answer: Yes, especially for businesses handling large transaction volumes.
Proper reconciliation reduces ITC disputes and interest exposure.
Q15: Where can businesses get GST compliance support?
Answer: Businesses can seek expert help for GST compliance and reconciliation.
Services like GST Registration and GST Compliance are often useful for maintaining proper GST records.
Conclusion
Notification No. 10/2017 – Union Territory Tax established the original GST interest framework under UTGST law.
In simple terms, it prescribed interest rates for delayed GST payment, wrongful ITC claims, and delayed refunds to ensure proper tax discipline and taxpayer protection.
Over time, GST systems have become more automated and data-driven, making interest compliance increasingly important.
Download PDF: Notification No. 10/2017 - Union Territory Tax
More Information: https://taxinformation.cbic.gov.in/
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