Chapter X (Sections 49-53) of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions related to Payment of Tax. Section 50 of Central Goods and Services Tax Act, 2017 (12 of 2017) provides for interest on delayed payment of tax under CGST Act 2017.
Recently, we have discussed in detail section 49 (i.e. Payment of tax, interest, penalty and other amounts) of CGST Act 2017. Today, we learn the provisions of section 50 of the CGST Act 2017. Complete Details of CGST Section 50 – Interest on delayed payment of tax. You may CLICK HERE to download list of all sections of CGST Act 2017 in PDF format.
Notes on Section 50 of CGST Act 2017
Section 50 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017 – Central Tax, G.S.R. 658(E), and dated 28.06.2017. In this note, you will learn detail of the provisions of section 50 of CGST Act 2017 read with Central GST Rules 2017.
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 by the Government on the recommendations of the Council.
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.
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 by the Government on the recommendations of the Council.
Author Note for Section 50 of CGST Act 2017
The CG vide Notification No. 13/2017 – Central Tax, G.S.R. 661(E) dated 28-06-2017 and Notification No. 10/2017 – Union Territory Tax, G.S.R. 747(E) dated 30-06-2017 fixed the rate of interest from the 1st day of July, 2017 at 18% p.a. and 24% p.a. for the purposes of sub-sections (1) and (3) of section 50 of CGST Act 2017 respectively.