Amended and updated notes on section 50 of CGST Act, 2017. Detail discussion on provisions and rules related to interest on delayed payment of tax.
Chapter X (Sections 49–53A) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to payment of tax. Section 50 of CGST 2017 provides for interest on delayed payment of tax.
Recently, we have discussed in detail section 49 (Payment of tax, interest, penalty and other amounts) of CGST Act 2017. Today, we learn the provisions of section 50 of Central GST Act 2017 as amended by the Finance Act 2022.
Section 50 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 50 is 1-7-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | X |
| Chapter Name | Payment of Tax |
| Section No. | 50 |
| Section Name | Interest on delayed payment of tax |
| Updated 2024 Edition | GST Law Book PDF |
Section 50 of Central GST – Interest on delayed payment of tax1
Section 50 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017 and amended by Finance Act 2022.
Section 50(1) of CGST Act
Section 50(1): Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council.
Provided that 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, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be payable on that portion of the tax which is paid by debiting the electronic cash ledger.
[Proviso of section 50(1) substituted and shall be deemed to have been substituted w.e.f. 1-July-2017 by the Finance Act 2021 vide Notification No. 16/2021-Central Tax, dated 01.06.2021]
Section 50(2) of CGST Act
Section 50(2): The interest under sub-section (1) shall be calculated, in such manner as may be prescribed, from the day succeeding the day on which such tax was due to be paid.
Section 50(3) of CGST Act
Section 50(3): Where the input tax credit has been wrongly availed and utilised, the registered person shall pay interest on such input tax credit wrongly availed and utilised, at such rate not exceeding twenty-four per cent. as may be notified by the Government, on the recommendations of the Council, and the interest shall be calculated, in such manner as may be prescribed.
[Provisions of Section 50(3) are substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2017 by the Finance Act, 2022]
- Section 50 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017 and amended by Finance Act 2022. ↩︎