If delay in paying rcm is any interest is applicable?
1. If yes from which date interest is calculated? Actual date of invoice from supplier or self prepared rcm invoice?
2.what is time limit of issuing rcm invoice?
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RCM invoice interest query
Replies (5)
According to Section 50(1) -> You are liable to pay interest
1. 50(2) -> The interest shall be calculated from the day succeeding the day on which such tax was due to be paid (i.e., the due date of the relevant month GSTR-3B).
2. The time limit for issuing RCM invoice: (CGST Act & Rules)
As per Rule 47 -> in the case of the taxable supply of services, the invoice shall be issued within a period of thirty days from the date of the supply of service
As per section 31 -> in the case of the taxable supply of goods, the invoice shall be issued on receipt of goods
What is the rate of interest? interest is calculated from which date date in invoice received from supplier or date in self prepared rcm invoice?
The rate of interest is 18%
Interest is calculated from the due date of relevant GSTR-3B till the actual date of payment of tax
For example, If the RCM liability related to the month of Jan'21 then the due date of GSTR-3B is 20th Feb'21. The interest is calculated from 21st Feb'21 to the actual date of payment.
Sir please specify your answer this interest 18% is calculated from the date of invoice received from supplier or from the self prepared invoice prepared by the receipent?
18 percent is calculated in case where u delay to pay tax to govt..... it's is calculated= Amout payable *18/100/ No of delay days from due date /365
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