TMI BlogInterest on delayed payment of tax [Section 50 of CGST ]X X X X Extracts X X X X X X X X Extracts X X X X ..... t such rate, not exceeding 18%, as may be notified by the Government on the recommendations of the Council. the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, shall be payable on that portion of the tax which is paid by debiting the electronic cash ledger. Exception :- above proviso does not apply where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period. Time period for calculation of interest [ Section 50(2) ] The interest under Section 50(1) shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Government 3 54(12) Interest on withheld refund 6% 4 56 Interest on delayed refunds 6% 5 Proviso to 56 Interest on refund arising from order passed by Adjudicating Authority/ Appellate Authority/ Tribunal/ Court and not refunded within 60 days 9% Manner of calculating interest on delayed payment of tax [ Rule 88B ] In case, where the supplies made during a tax period are declared by the registered person in the return for the said period and the said return is furnished after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od starting from the date of utilisation of such wrongly availed input tax credit till the date of reversal of such credit or payment of tax in respect of such amount, at such rate as may be notified under section 50(3). [ Rule 88B(3) ] Explanation -For the purposes of rule 88B(3), - (1) input tax credit wrongly availed shall be construed to have been utilised, when the balance in the electronic credit ledger falls below the amount of input tax credit wrongly availed, and the extent of such utilisation of input tax credit shall be the amount by which the balance in the electronic credit ledger falls below the amount of input tax credit wrongly availed. in other words Having sufficient balance in Credit Ledger ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 73 (8) provides that where a person has been served with show cause notice but has made the payment of tax and penal interest under Section 50 within thirty days of issue of notice, no penalty is payable and all proceedings in respect of that tax amount are deemed to be concluded. The issue is whether interest is payable u/s 50(1) or 50(3). 4. On a conjoint reading of Sections 50 (1), 73 (5), 73 (6) and 73 (8 ) of the Act, it is evident that where a person makes a voluntary payment of interest along with belated payment of tax whether admitted on his own or within thirty days from the date of issue of show cause notice, then the proceedings are deemed to be concluded and no penalty is leviable. 5. Other Important Points to No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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