CHARGING INTEREST UNDER SECTION 50(3) OF CGST ACT, 2017

Section 50(3) of the CGST Act, 2017 provides for charging of interest on delayed payment of tax.

The interest rate is 18% per annum and is calculated from the day after the due date of payment till the date of actual payment.

The interest is calculated on the amount of tax that is unpaid or paid after the due date.

The interest is to be paid by the taxpayer and cannot be waived off by the tax authorities.

The interest is to be paid along with the tax amount and is to be shown separately in the tax invoice.

If the taxpayer has paid excess tax, the interest on such excess amount will be refunded to the taxpayer.

The interest amount paid by the taxpayer can be claimed as an input tax credit.