Section 50 CGST Act 2017 – Interest on delayed payment of tax.

By | April 17, 2017
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(Last Updated On: May 28, 2018)

Section 50 CGST Act 2017

[ Section 50 CGST Act 2017 Notified w.e.f 01.07.2017 vide Notification No. 9/2017 – Central Tax Dated 28th June, 2017 ]

Section 50 CGST Act 2017 Interest on delayed payment of tax  and is covered in Chapter X – Payment of Tax

[Note : CGST Act 2017 also known as CENTRAL GOODS AND SERVICES TAX ACT, 2017 assented by the President of India on 12-4-2017 -An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and the matters connected therewith or incidental thereto. ]

Interest on delayed payment of tax.

50. (1) Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, 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 [ Note 1 , 3]  by the Government on the recommendations of the Council.

(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) A taxable person who makes an undue or excess claim of input tax credit under sub- section (10) of section 42 or undue or excess reduction in output tax liability under sub-section (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 [ Note -2 ,2A 4 ]  by the Government on the recommendations of the Council.


Note

1. 18% Rate of Interest under Sub-section (1) of section 50 prescribed under CGST Act 2017 vide  Notification No. 13/2017 – Central Tax Dated 28th June, 2017

1A seeks to prescribe 18% rate of interest under sub-section (1) of section 50 by Notification No. 6/2017 – Integrated Tax Dated 28th June, 2017 

2. 24%  Rate of Interest under Sub-section (3) of section 50 prescribed under CGST Act 2017 vide  Notification No. 13/2017 – Central Tax Dated 28th June, 2017

2A seeks to prescribe 24% rate of interest under sub-section (3) of section 50 by Notification No. 6/2017 – Integrated Tax Dated 28th June, 2017 

3. 18% Rate of Interest under Sub-section (1) of section 50 prescribed under UTGST Act 2017  vide Notification No. 10/2017 – Union Territory Tax Dtd 30th June, 2017

4. 24%  Rate of Interest under Sub-section (3) of section 50 prescribed under UTGST Act 2017 vide Notification No. 10/2017 – Union Territory Tax Dtd 30th June, 2017

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