Interest rate

[Sudhir Kumar]

Sir whether section 50(3) of CGST Act 2017 in which 24 percent of interest has been recommended is applicable now or amended and only 18% of interest is applicable.

AI Summary

Interest Rate on Delayed Payments Under Section 50(3) of CGST Act Retrospectively Reduced to 18% from 24% A forum discussion focused on the applicable interest rate under Section 50(3) of the Central Goods and Services Tax (CGST) Act 2017. Initially, a 24% interest rate was specified for delayed payments. However, several participants clarified that the Finance Act 2022, through Section 116 and the Sixth Schedule, retrospectively reduced this rate to 18% from July 1, 2017. Despite previous departmental demands for 24% interest, the consensus among contributors is that the applicable rate for wrongly availed and utilized Input Tax Credit (ITC) is now 18%.