interest on late tax payment

Under GST, interest is liable to be paid when there is a delay in payment. Provisions have been made for interest to be paid, when there is a lapse by the tax payer as well as by the Department. In this blog, let us understand the scenarios where interest is applicable. Interest on late payment of tax by tax payer The two scenarios where a tax payer will be liable to pay interest are: Delayed payment of tax Input tax credit has been claimed in excess or where it was not eligible to be claimed/ Tax liability has been shown to be less than the actual Interest rates Scenario Interest rate per annum Delayed payment of tax 18% ITC claimed […]