Calculate 18% per annum interest on delayed GST payment under Section 50 of CGST Act.
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.
GST law mandates 18% per annum interest on delayed payment under Section 50 of CGST Act. This rate applies to 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)
| 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