https://www.taxtmi.com/article/detailed?id=15937 Statutory interest under GST is framed as compensatory but a fixed high statutory rate may exceed economic benchmarks and assume a deterrent character, raising Article 14 proportionality concerns. The penalty scheme separates lower sanctions for non-fraudulent cases from much higher liability where fraud or wilful suppression is alleged; factual characterisation often determines which regime applies. Asymmetry between interest on delayed payments and delayed refunds further challenges systemic coherence. Calibrating interest to a dynamic benchmark and narrowing penalties in interpretive disputes would better balance revenue protection and fairness. en-us Fri, 27 Feb 2026 09:12:11 +0530 Fri, 27 Feb 2026 09:12:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=15937 Statutory interest under GST is framed as compensatory but a fixed high statutory rate may exceed economic benchmarks and assume a deterrent character, raising Article 14 proportionality concerns. The penalty scheme separates lower sanctions for non-fraudulent cases from much higher liability where fraud or wilful suppression is alleged; factual characterisation often determines which regime applies. Asymmetry between interest on delayed payments and delayed refunds further challenges systemic coherence. Calibrating interest to a dynamic benchmark and narrowing penalties in interpretive disputes would better balance revenue protection and fairness. Articles Goods and Services Tax - GST Fri, 27 Feb 2026 09:12:11 +0530 https://www.taxtmi.com/article/detailed?id=15937