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25/10/2019

GST Late Payment Interest Calculator in Excel

As you know, GST rolled out in July 2017, after that there is too much notifications and circulars change the law. In all these changes Interest also applicable on late payment of GST Payment. Today we discuss about interset on late payment of GST.

Section 50 does not prescribe the amount on which interest is to be levied:-

In light of the provisions under the aforesaid sub-sections, the following questions may be addressed as below:-

a) Who is liable to pay interest:-

Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed is liable to pay interest. [50(1)]


b) At what rate:-
At such rate not exceeding 18%, as may be notified by the Government on the recommendations of the Council. The Government has notified 18% vide Notification No. 13/2017 – Central Tax dated 28/06/2017. [50(1)]

c) On which amount the interest is to be paid:-
Not specifically mentioned in section 50. It may be recalled that section 75 of the Finance Act, 1994 was also silent on this question.

d) For which period:-
For the period for which the tax or any part thereof remains unpaid. [50(1)]

e) When to pay the interest:-
Not mentioned in the section. However as per rule 61(3), every registered person furnishing the return under sub-rule (1) shall, subject to the provisions of section 49, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the Act or the provisions of this Chapter by debiting the electronic cash ledger or electronic credit ledger and include the details in Part B of the return in FORM GSTR-3.

f) Whether any notice is required:-
No. Interest is to be paid on his own. [50(1)]

g) Where to show interest payable on late payment of GST?
You need to show interest liability in Table 5.1 in GSTR 3B to setoff the Interest Liability.

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