Interest on delayed payment of tax \u2013 Section 50 of CGST, 2017
By: – CA.VINOD CHAURASIA
Goods and Services Tax – GST
Dated:- 26-9-2017<\/p>\n
Introduction: This article discusses in detail about interest payable on late payment of tax liability under GST.
\nEvery person who is liable to pay tax under GST fails to pay the tax or any part thereof to the Government within the due date then he shall pay on his own, interest at 18% or 24% P.A. on outstanding tax liability.
\nFurther, the interest shall be calculated from the day succeeding the day on which such tax was due to be paid.
\nVide notification no 13\/2017 – Central Tax dated 28th June 2017, interest rate on late payment of GST under section 50 of CGST Act as below:
\n * Interest <\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ys default (31 days, we shall not count 20th may) = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Interest on delayed payment of tax \u2013 Section 50 of CGST, 2017By: – CA.VINOD CHAURASIAGoods and Services Tax – GSTDated:- 26-9-2017 Introduction: This article discusses in detail about interest payable on late payment of tax liability under GST. Every person who is liable to pay tax under GST fails to pay the tax or any … Continue reading “Interest on delayed payment of tax \u2013 Section 50 of CGST, 2017”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7934","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7934","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7934"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7934\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\n * Outstanding tax (Which is ₹ 10 lakh)
\nHence, interest on late payment of tax will be ₹ 15,287\/- (10 lakh*18%*31\/365).
\nExample -2
\nSuppose for month of July
\nOutput GST=100000
\nInput GST=80000
\nGST payable=20000
\nThis 20000 we have to pay by 20 August (20 of Next Month)
\nIn case we pay the same on 24 August, we are 4 days late
\nInterest will be calculated as follows
\n=20000*4\/365*18%=39.45
\nInterest will be rounded off to 39
\nTotal amount payable =20000+39=20039
\nThe author is a practising CA based in Delhi and is registered Insolvency Professional. He can be reached at cavinodchaurasia@gmail.com , Mob. +91 9953587496.
Scholarly articles for knowledge sharing by authors, <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n