IS INTEREST WILL BE LEVIED U/S 50 FOR DEFAULT IN MAKING PAYMENT TO SUPPLIER WITHIN 180 DAYS

[PRAVEEN SONI]

IS INTEREST WILL BE LEVIED U/S 50 FOR DEFAULT IN MAKING PAYMENT TO SUPPLIER WITHIN 180 DAYS?

AI Summary

Interest Under Section 50 of CGST Act: Clarifying Interest on Payment Defaults Beyond 180 Days and Rule 37(1) Implications. A discussion on whether interest is levied under Section 50 of the CGST Act for payment defaults to suppliers beyond 180 days. One participant clarifies that interest is due if payment is delayed beyond the contract period, as per Section 50, which concerns interest on delayed GST payments to the government. Another highlights Rule 37(1), stating interest is payable from the invoice date after 180 days if input tax credit (ITC) is availed but not paid to the supplier. A third participant questions whether interest is calculated from the invoice date or ITC availment, as ITC reversal is relevant only if availed.