Late payment of GST amount

[Yugank Goel]

Dear All,

Suppose we have not depsited tax on time then what is the interest rate that we will be liable to pay.

Is it 18% or 24%??

If 18%, then when we got liable for 24%.

[YAGAY andSUN]

Interest on Late GST Payment
An interest of 18 percent is levied on the late payment of taxes under the GST regime. The interest would be levied for the days for which tax was not paid after the due date.

If GST is not paid within the due dates of filing return Interest at following rates has to be paid:

Particulars	Interest
Tax paid after due date	18% p.a.
Excess ITC Claimed or excess reduction in Output Tax	24% p.a.

The Interest has to be calculated from the next day on which tax was due.

For example, a taxpayer fails to make a tax payment of ₹ 10,000 for the month of December 2017 (due date -20th Jan 2018). He makes the payment on 20th Feb 2018. Interest will be calculated as follows:

₹ 10,000 * 31 days/365 * 18% = ₹ 153

[MANASH MUKHERJEE]

Is the interest due is auto calculated by system or it is to be self calculated?

[YAGAY andSUN]

For the time being it should be calculated manually.

AI Summary

Interest on late GST payment accrues from the day after the due date and must be calculated manually for the delay period. Interest on GST unpaid after the return due date is charged at a higher statutory rate for late payment, calculated from the day after the due date for the period of delay on a pro rata days/365 basis; a distinct, higher rate applies where excess input tax credit is claimed or excess output tax reduction occurs. Interest must currently be computed manually rather than by an automated system.