Calculate 18% per annum interest on delayed GST payment. Know the exact penalty amount.
Under Section 50 of CGST Act, if you pay GST late, you must pay interest at 18% per annum. Interest is calculated from the due date to actual payment date. It is compounded monthly but we'll show simple interest for quick estimation.
GST law mandates 18% per annum interest on delayed payment under Section 50 of CGST Act. This rate is fixed and applies to both CGST, SGST, and IGST.
Interest is calculated from the due date (usually 20th of next month for GSTR-3B) to the actual payment date. Even 1 day delay attracts interest.
Simple Interest: Interest = (Tax Amount × Rate × Days) / (365 × 100)
Compound Interest: Calculated monthly for exact amount (use this calculator for estimate)
| Tax Amount | Days Late | Interest @ 18% |
|---|---|---|
| ₹10,000 | 10 days | ₹49 |
| ₹50,000 | 30 days | ₹739 |
| ₹1,00,000 | 60 days | ₹2,959 |
| ₹5,00,000 | 90 days | ₹22,192 |
💡 Interest is automatically calculated on GST portal when you file returns
💰 You must pay interest along with delayed tax
📅 Interest applies from due date, not filing date
🔄 For multiple months delay, interest compounds monthly
❌ Interest is NOT tax deductible as business expense
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