Indirect Taxes

INTEREST

Interest Rates: (Notification 13/2017 – Central Tax dated 28.06.2017)

Delay on account of

Notified Rate

Section 50 (1) of CGST Act - Failure to pay tax (Payable by the taxpayer)

18%

Section 50 (3) of CGST Act - Excess or undue claim of input tax credit under section 42 (10) of CGST Act or undue or excess reduction in output tax liability under section 43 (10) of CGST Act (Payable by the taxpayer)

24%

Section 54 (12) of CGST Act – Refund withheld u/s 54 (11) ((Payable by the Government)

6%

Section 56 of CGST Act – Interest on refunds in case of delay beyond sixty days from the date of receipt of application for refund (Payable by the Government)

6%

Proviso to section 56 of CGST Act – Interest on refunds pursuant to an order passed by adjudicating authority or Appellate Authority or Appellate Tribunal or Court, which has attained finality not paid within 60 days from the date of receipt of application consequent to such order (Payable by the Government)

9%

Corresponding notifications under IGST Act and respective State GST Act to be referred for interest.