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Interest Rate

Juned Ahmad (Accountant) (111 Points)

12 September 2019

what is Interest rate for revarsable ITC 18% or 24%

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8 Replies

Sajal Mandal (294 Points)
Replied 12 September 2019

18% ( as per sec 50)

1 Like

RAJA P M ("Do the Right Thing...!!!") (127167 Points)
Replied 12 September 2019

interest @ 24%... ...

anurag kumar (21 Points)
Replied 12 September 2019

For reversal of ITC Interest rate is 24%

srinivasan (Executive ) (16 Points)
Replied 12 September 2019

ITC excess claimed & going to reverse interest @ 24%

Simple (ACTT) (57 Points)
Replied 12 September 2019

18% on self assesse

24% on demand by GST officer

Please anybody verify my view

vinay joshi (83 Points)
Replied 13 September 2019

ITC Reverse & less output liability declared - 24%
Tax not paid - 18%

Simple (ACTT) (57 Points)
Replied 13 September 2019

What is differecne between "less output liability and Tax not paid"

It is same that mean tax not paid or short paid on output liability

Ravi kumar (178 Points)
Replied 15 September 2019

Interest provisions in GST law are covered under section 50(1) and section 50(3) of Central Goods and Services Tax Act, 2017.

Section 50(3) specifies that interest rate should not exceed 24% p.a. and intends to exclusively cover cases of contravention as per section 42 (10) and section 43 (10). Whereas section 50 (1) is a residuary section which covers all cases other than cases falling under section 50 (3). Interest rate specified u/s 50 (1) is 18% p.a.

1. Interest u/s 50 (3) are to be charged @ 24% p.a. only in case of reclaim of credit reversed earlier. Only cases covered u/s 42 (10) and 43 (10) are covered in section 50 (3).

2. In other cases interest will be paid @ 18% p.a. u/s 50 (1).