Article compiles Rate of Interest under the provisions of provisions of CGST/IGST Act, 2017 and takes into account  Notification Numbers – 13/2017 – Central Tax, dated 28th day of June, 2017 and 06/2017 –Integrated Tax, dated 28th day of June, 2017 issued by CBEC. Interest Rates are Effective from – 01/07/2017.

SI. No. Particulars Rate of
interest
per annum
1

For non-payment or late payment of tax liability or any part thereof – Every person who is liable to pay tax in accordance with the provisions of CGST/IGST Act or the rules made there under, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council.

The interest shall be calculated, in such manner as may be prescribed, from the day succeeding the day on which such tax was due to be paid.

Related Provisions- Section 20 of the Integrated Goods and Services Tax Act, 2017 read with sub-section (1) of section 50 of the Central Goods and Services Tax Act, 2017

18%
2 For undue or excess claim of ITC or undue or excess reduction of output tax liability–  A taxable person who makes an undue or excess claim of input tax credit  shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four per cent., as may be notified by the Government on the recommendations of the Council.

Related Provisions– Section 20 of the Integrated Goods and Services Tax Act, 2017 read with sub-section (3) of section 50 of the Central Goods and Services Tax Act, 2017

24%
3 For withholding of refund which is subject matter of an Appeal-  Taxable person becomes entitled to such refund on disposal of the appeal or further proceedings

Related Provisions– section 20 of the Integrated Goods and Services Tax Act, 2017 read with sub-section (12) of section 54 of the Central Goods and Services Tax Act, 2017

6%
4 For withholding of refund beyond sixty days from the date of receipt of application for refund. Provided a proper officer issued refund order after appropriate proceedings.

Related Provisions– section 20 of the Integrated Goods and Services Tax Act, 2017 read with section 56 of the Central Goods and Services Tax Act, 2017

6%
5 For withholding of refund and such claim of refund arises from an order passed by an Adjudicating authority or Appellate authority or Court which has attained finality and the same is not refunded within 60 days from the date of receipt of application field consequent to such order.

Related Provisions– section 20 of the Integrated Goods and Services Tax Act, 2017 read with proviso to section 56 of the Central Goods and Services Tax Act, 2017

9%

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