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How to calculate interest on GST

K Giribabu Naik (Accounts Manager) (32 Points)

13 February 2021

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Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (7322 Points)
Replied 13 February 2021

nterest is applicable due to the late payment of GST. Interest has to be paid by every registered taxpayer who pays GST after the due date or claims excess Input Tax Credit (ITC) or reduces excess output tax liability. The interest on late payment of GST is as follows:

Particulars	Interest
Tax paid after the due date	18%
Excess ITC claimed or excess reduction in output tax liability	24%

When a taxpayer does not file GST returns within the prescribed due dates, a late fee is charged. The late fee amount will depend upon the number of days of delay from the due date. The late fee under GST is also applicable for the ‘NIL’ return filers. The following is the applicable late fee for GSTR-3B: