Rate of Interest in GST for delay in GST payment, Wrong ITC, Refund and automatic calculation in GSTR 3B

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The Central Government, in alignment with the recommendations of the Council, has issued Notification No. 13/2017 –Central Tax on the 28th of June, 2017.

This notification, exercising powers conferred by sub-sections (1) and (3) of section 50, sub-section (12) of section 54, and section 56 of the Central Goods and Services Tax Act, 2017 (12 of 2017), establishes the rate of interest per annum for specified sections.

The table below delineates the designated sections alongside their respective interest rates, including changes indicated from the Finance Act 2022.

S.No.SectionRate of interest
Change in interest Rates
from Finance Act 2022
1.Sub-section (1) of section 50
(Non Payment/delay in GST liability)
2.Sub-section (3) of section 50
Wrong utilization of ITC
3.Sub-section (12) of section 54
Refund by taxpayer
4.Section 56
Refund withheld by department
5.Proviso to section 56
Refund due to order etc.

Automatic Interest Calculation in GSTR 3B

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Pooja Gupta

CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

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CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

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