Rate of interest

24% per annum

Refer sub section (3) of Section 50 of the CGST Act 2017.

The Provision of the Law is reproduced below :

"A taxable person who makes an undue or excess claim of input tax credit under sub-section [10] of Section 42, or undue or excess reduction in output tax liability under sub-section [10] of Section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding TWENTY FOUR PER CENT, as may be notified by the Government on the recommendations of the Council."

Hence it is 24%.

But in notification 13/2017 central tax p.a is mentioned

which is indicating 24% per annum. 2% per month.

2% per month is correct

When recipient has made an excess or undue claimof ITC as per section 42(10) of the Act, rate ofinterest applicable will be 24%.