Is there Interest or Panality on Late payment of Interest under GST

Under GST, any late payment of interest itself does not attract separate interest or penalty. However, if there is a late payment of GST tax dues (which includes unpaid interest), an interest charge is levied at 18% per annum on the delayed amount for the period of delay, as stipulated in Section 50 of the CGST Act.

Interest at 18% p.a. is levied on late payment of GST dues, calculated from the day after the due date till the actual payment date.

Penalties mainly apply for delay or default in filing returns, but the late payment of the interest portion itself does not attract a separate penalty under GST law.

If the taxpayer is found to have willfully misstated liabilities, penalties (apart from interest) may be levied for offences such as fraud or misreporting.

Interest on late payment of interest under GST:

• No. Sec 50 charges interest on delayed tax, not on interest. Unpaid interest is recoverable (Sec 79), but there's no further interest on it.

• A penalty can apply if interest isn't paid after a demand order (e.g. under 73/74 proceedings).

Yes. If GST tax was paid late, interest under Section 50 is payable on the delayed tax. If that interest itself is paid after it has become due, the GST law does not prescribe a separate “interest on interest” or late-payment penalty merely for delaying the interest payment. However, any unpaid tax, and any penalty independently applicable to the underlying default, remain payable. Confirm the relevant tax period and whether the return was filed before calculating interest.

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