GST Interest Calculator

Calculate interest on late GST payment under Section 50 of CGST Act, 2017

Tax Amount (₹)

Interest Type

Monthly (18% p.a.) Daily (18% p.a.)

GST Due Date

Actual Payment Date

Section 50 of CGST Act, 2017: Every person who is liable to pay tax but fails to pay shall pay interest at 18% per annum from the day after the due date till the actual date of payment. For wrongful excess ITC claim, interest is 24% p.a. Interest is calculated on the gross tax liability (before adjusting ITC).

About GST Interest Calculator

The GST Interest Calculator helps taxpayers compute the interest payable on delayed GST payments under Section 50 of the CGST Act, 2017. When GST liability is not paid by the due date, interest accrues at 18% per annum (or 24% for cases involving fraudulent availing of ITC). This calculator accurately determines the interest liability based on the outstanding tax amount, the number of days delayed, and the applicable interest rate, ensuring compliance with CBIC guidelines.

Under the GST regime, every registered person must file returns and pay tax by the prescribed due dates. Failure to do so attracts interest under Section 50(1) at 18% per annum, calculated on the gross tax liability from the day after the due date until the actual date of payment. For taxpayers who have wrongly availed Input Tax Credit (ITC) and utilized it, a higher rate of 24% per annum applies under Section 50(3). Our calculator handles both scenarios and provides a day-wise breakdown for complete transparency.

Key Features

Calculate interest under Section 50(1) at 18% per annum for normal delays
Calculate interest under Section 50(3) at 24% per annum for wrongful ITC availed
Day-wise computation with precise date range calculation
Supports CGST, SGST, and IGST components separately
Updated for FY 2026-27 as per latest CBIC notifications

Frequently Asked Questions

What is the interest rate for late GST payment in India?

The interest rate for late GST payment is 18% per annum under Section 50(1) of the CGST Act. However, if a taxpayer has wrongly availed and utilized Input Tax Credit (ITC), the interest rate increases to 24% per annum under Section 50(3). The interest is calculated from the day after the due date until the actual date of payment on the gross tax amount.

How is GST interest calculated on delayed payment?

GST interest is calculated using the formula: Interest = Outstanding Tax × Interest Rate × Number of Days Delayed / 365. The outstanding tax is the gross liability (not net after ITC), the rate is 18% or 24% depending on the scenario, and the number of days is counted from the day after the due date until the actual payment date.

Is GST interest applicable on filing GSTR-3B late?

Yes, GST interest is applicable when GSTR-3B is filed after the due date and tax is paid late. The interest is computed on the total tax liability shown in the return from the day after the due date until the actual payment date. Even if you file the return on time but pay the tax later, interest applies from the due date.

Can ITC be used to pay GST interest?

No, Input Tax Credit (ITC) cannot be used to pay interest on delayed GST payments. Interest must be paid in cash through the electronic cash ledger. This is clearly specified in the GST law — ITC can only be used for payment of tax, not for interest, penalty, or fees.

What is the difference between Section 50(1) and Section 50(3) interest?

Section 50(1) applies to normal delayed payment of GST at 18% per annum, calculated on the net tax liability (after ITC). Section 50(3) applies when ITC is wrongly availed and utilized, attracting 24% per annum on the wrongly availed ITC amount. The higher rate under 50(3) is a deterrent against fraudulent ITC claims.

GST Interest Calculator