Question
I paid my GST tax a month late. How is the interest calculated and at what rate?
Answer
Interest on late payment of GST is charged at 18% per annum on the outstanding tax amount. It accrues daily from the day after the due date until the tax is actually paid into the cash ledger, and applies in addition to any late filing fee. A higher 24% rate can apply to excess or wrongly availed and utilised input tax credit. Like the late fee, interest must be paid in cash and cannot be offset using ITC. Work out your liability with our GST late fee and interest calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.