Interest rate U/S 50(3) of CGST ACT 18 OR 24

Under Section 50(3) of the CGST Act, the interest rate for delayed payment of tax is as follows:

• 18% per annum on the amount of tax unpaid (or short paid), calculated from the day after the due date till the date of actual payment.

Why 18%?

• Section 50(1) mentions interest at 18% p.a.

• Section 50(3) states: if the tax is paid after issuance of a notice, the interest is calculated at 18% but on the amount of tax paid after the notice date.

There is no provision for 24% interest under CGST Act Section 50(3).

Summary:

• Interest rate u/s 50(3) = 18% per annum.