Section 50 - Interest on delayed payment of tax

Finin2min Summary

In practical work, use this provision by first fixing the taxable event or procedural step, then connecting the facts to Chapter X and the linked Rules, forms, notifications, circulars and State/UT GST law.

Bare Act / Law / Rules / Notifications

Section 50. Interest on delayed payment of tax.- (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: 1 [ 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 3 [ or section 74A] in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.] (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. 2 [(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] *Enforced w.e.f. 1st July, 2017. 1. Substituted (w.e.f. 1st July, 2017) by s. 112 of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 for "[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 ...

Workflow / Flow Chart

1. Read the official statutory text of Section 50 with Chapter X and note every proviso or explanation.

Q&A

What does Section 50 cover?

Section 50 covers interest on delayed payment of tax within Chapter X of the CGST Act.

Can this page replace the official Act?

No. Use this page as a practical guide, then verify Section 50 in India Code, CBIC and any applicable Gazette notification.

What should be retained for Section 50?

Keep the official source, fact matrix, invoices or returns, portal acknowledgements, calculations, correspondence, notices/orders and reviewer conclusion.

Primary Official Sources

• India Code consolidated CGST Act PDFofficial consolidated Act PDF used for statutory cross-check
• CBIC Tax Information Act explorerofficial CBIC section explorer route
• GST Council Central GST resourcesofficial GST Council route for central GST law resources
• CBIC official section content payloadofficial CBIC section HTML payload used for the statutory extract

Related Inter / Intra Links

Section 50 should be read inside the wider GST law hub with CGST Rules, GST forms, circulars, notifications, case-law and practical workflow pages.

Disclaimer

Finin2min provides this Section 50 page for education and professional research. Official India Code, CBIC, Gazette and court sources control the legal position for Interest on delayed payment of tax.