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?

[KALLESHAMURTHY MURTHY K.N.]

Sir, 

Interest is applicable where the ITC availed on the value of goods or services received but not paid the value of goods or services including tax for more than 180 days (not within 180 days) from the date of invoice as per Rule 37 of the CGST Rules.

AI Summary

Interest under Section 50 applies where input tax credit is claimed but supplier payment is delayed past the statutory period. Interest under Section 50 applies where a recipient has availed input tax credit on goods or services but has not paid the supplier's value including tax within the prescribed period; this liability is governed by Rule 37 of the CGST Rules and accrues for the period of default.