Section 50 – Interest on Delayed Payment of Tax
Section 50 of CGST Act, 2017 – Interest on Delayed Payment of Tax Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Importance of Section 50 Section 50 provides for levy of interest where a registered person fails to pay GST within the prescribed time. Interest under GST is: Compensatory in nature Automatic and mandatory Independent of penalty proceedings This section is frequently invoked during scrutiny, audit and demand proceedings. 2. Statutory Provision – Section 50 Section 50(1): Every person who is liable to pay tax 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 interest at such rate, not exceeding 18% , as may be notified. Proviso to Section 50(1): Interest shall be payable on that portion of tax which is paid by debiting the electronic cash ledger, except where s...