# Section 50 - Interest on delayed payment of tax of CGST ACT, 2017

50. (1) 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, 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.

(2) The interest under sub-section (1) 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.
(3) A taxable person who makes an undue or excess claim of input tax credit under
sub-section (10) of section 42 or undue or excess reduction in output tax liability under
sub-section (10) of section 43, 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.

### Analysis by Experts

By mahesh auditor, 1 day, 22 hours ago

Dear Sir

Section 50 - Interest on delayed payment of tax of CGST ACT,  how to calculate interest for example mentioned in below.

Example-1 For the month of July Return filling Due Date 20th Aug But We Filed 24th of Aug

Sales Rs 100000-00 CGST Rs 18000.00 & SGST Rs. 18000.00

Purchase Rs 80000-00 CGST Rs. 14400.00 & SGST Rs. 14400.00

Tax Calculation

Sales Out Put CGST Rs 18000.00  & SGST Rs. 18000.00

Less: Input CGST  Rs: 14400.00  & SGST Rs. 14400.00

Tax Payable CGST Rs 3600.00 & SGST Rs 3600.00

1. Interest Calculation

CGST Rs 3600.00X18%PA*4Days  = Rs 7.10

SGST Rs 3600.00X18%PA*4Days  = Rs 7.10

2. Another Interest Calculation

CGST Output  Rs 18000.00X18%PA*4Days = 35.50

SGST Output  Rs 18000.00X18%PA*4Days = 35.50

The above mentioned Interest Calculation what is the correct calculation in GST ACT