Interest Rate

Rate / HSN codes 354 views 8 replies
what is Interest rate for revarsable ITC 18% or 24%
Replies (8)
18% ( as per sec 50)
interest @ 24%... ...
For reversal of ITC Interest rate is 24%
ITC excess claimed & going to reverse interest @ 24%

18% on self assesse

24% on demand by GST officer

Please anybody verify my view

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

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 
 
 

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).


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