08 July 2025
I am writing to seek clarification on the penalty and interest rate applicable in case a party fails to make GST payments within the due date. Specifically, I would like to know:
1. If a party fails to pay GST within 180 days, what is the penalty that will be levied by the GST department? 2. If the payment is delayed for more than 2 years, what is the interest rate and penalty rate that will be applicable?
I would appreciate it if you could provide me with a detailed response at the earliest.
Please clarify the relevant sections of the GST Act and rules that apply to this scenario.