GST Interest Rate (Delay Payment Late Return Penalty)

GST Interest Rates for Delay in payment of Tax, Interest for Non Filing of GST Returns, GST Interest for issues in output tax liability etc have been covered below. In our earlier article, we have already provided the GST Rates list and also Reverse Charge Mechanism under GST. Interest rates in case of Refunds are also listed out below. The highest rate of GST Interest is 24% and the lowest GST Interest rate is 6%.

Nature of Levy interest

Rate of Interest

Delay payment of Tax

18%

Contravention output tax liability of the recipient in his return

24%

Contravention output tax liability of the supplier in his return

24%

Interest payable on Refund in respect of Appeal

6%

Interest Payable on delay payment of refund

6%

Delay payment of  Interest on refund Order passed by Appellate Authority or Appellate Tribunal or court

9%

Interest paid on delay payment of GST:

According the section 50(1) of GST Act provided that where every person liable to discharge his output tax but he 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 percent.

Interest Paid on contravention output tax liability of the recipient in his return:

According to Section 50 (3) read with section 42 (10) which postulate that  where the amount reduced from the output tax liability in contravention of the provisions of sub-section (7) shall be added to the output tax liability of the recipient in his return for the month in which such contravention takes place and such recipient shall be liable to pay interest @ 24% on the amount so added.

Interest Paid on contravention output tax liability of the supplier in his return:

According to Section 50 (3) read with section 43 (10) which postulate that where the amount reduced from the output tax liability in contravention of the provisions of sub-section (7) shall be added to the output tax liability of the supplier in his return for the month in which such contravention takes place and such Supplier shall be liable to pay interest @ 24% on the amount so added.

Interest payable on Appeal Refund:

Section 54 (12) read with Section 54 (11) which postulate that Where an order giving rise to a refund is the subject matter of an appeal or further proceedings or where any other proceedings under this Act is pending and the Commissioner is of the opinion that grant of such refund is likely to adversely affect the revenue in the said appeal or other proceedings on account of malfeasance or fraud committed, he may, after giving the taxable person an opportunity of being heard, withhold the refund till such time as he may determine and the taxable person shall, notwithstanding anything contained in section 56, be entitled to interest at such rate not exceeding six percent.

Interest Payable on delay payment of refund in respect of applicant refund:

According to section 56 read with section 54 (5) which postulate that where applicant filed an application for refund and if, on receipt of any such application, the proper officer is satisfied that the whole or part of the amount claimed as refund is refundable, he may make an order accordingly and the amount so determined shall be credited to the Fund referred to in section 57.

Applicant refund is not refunded within sixty days from the date of receipt of application under subsection (1) of that section, interest at such rate not exceeding six percent .The interest shall be payable in respect of such refund from the date immediately after the expiry of sixty days from the date of receipt of the application under the said sub-section till the date of refund of such tax.

Delay payment of  Interest on refund Order passed by Appellate Authority or Appellate Tribunal or court:-

Proviso of Section 56 which provide that Provided that where any claim of refund arises from an order passed by an adjudicating authority or Appellate Authority or Appellate Tribunal or court which has attained finality and the same is not refunded within sixty days from the date of receipt of application filed consequent to such order, interest at such rate not exceeding nine percent.

The interest shall be payable in respect of such refund from the date immediately after the expiry of sixty days from the date of receipt of application till the date of refund.

Also Read our Other GST Related Articles

Conclusion : GST Interest

Through this article, we tried to clear all questions relating to GST Interest on a whole. If you have any further questions on GST Interest Rates, feel free to post your questions below on our comments section.