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CA Final · Indirect Tax Laws · Payment of Tax

Under Rule 88B(2) of the CGST Rules, 2017, in cases other than a late return declaring the period's supplies, interest under section 50(1) on delayed tax payment is calculated for which period?

Interest runs on the unpaid tax from the date the tax was due to be paid until the date it is actually paid. Rule 88B(2) prescribes this for all cases outside the late-return situation covered by Rule 88B(1), at the rate notified under section 50(1).

  1. AFrom the date of filing the return to the date of payment
  2. BFrom the date on which the tax was due to be paid till the date it is paid, on the unpaid taxCorrect
  3. CFrom the end of the financial year till the date of payment
  4. DFrom the date of issue of the notice till the date of payment

Explanation

Rule 88B(2) says that in all other cases interest is calculated on the amount of tax that remains unpaid, from the date it was due to be paid until the date it is paid. The other starting points are not in the rule.

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