Interest under GST
Interest Under GST Section 50(1) i) where tax is liable to be paid and ii) such person has failed to pay either full or part thereof. iii) Interest shall be paid for the default period i.e for the period for which the tax or any part thereof remains unpaid. Notification no. 13/2017 CT dated 28.06.2017 APPLICABILITY OF NORMAL RATE OF INTEREST Section 50(1) and 50(2) – Normal rate – 18% APPLICABILITY OF HIGHER RATE OF INTEREST It emanates from the foregoing provision that section 50(3) is applicable only in following two situations namely: (a) undue or excess claim of ITC u/s 42 (10), or (b) undue or excess reduction in output tax liability u/s 43 (10) Therefore, since the mechanism as required for the applicability of interest under the enabling provision section 42 has not been implemented till date, there cannot be applicability of interest section 50(3) read with section 42. Taxability of any transaction there are two provisions, one is charging provisions which provides t