Question 1

What is the difference between 18% and 24% GST interest?

Accepted Answer

18% p.a. applies to delayed payment of output tax. 24% p.a. applies to excess or wrongly availed input tax credit that is utilised.

Question 2

Is GST interest calculated on a day-count basis?

Accepted Answer

Yes. GST interest is computed as annual rate × number of days ÷ 365.

Question 3

What is the net-cash-liability relief?

Accepted Answer

For delayed filing of GSTR-3B, interest is charged only on the net cash liability (paid through cash ledger), not the ITC-set-off portion.

Question 4

Is GST interest deductible for income tax?

Accepted Answer

Generally yes, as it is a compensatory business expense, but confirm with your Chartered Accountant.

Question 5

What are the typical GST due dates?

Accepted Answer

GSTR-3B is generally due by the 20th of the following month, with some states/turnover categories having different dates.

GST Interest Calculator — Section 50, CGST Act

Frequently asked questions