When is 24% interest charged under GST?

On input tax credit that was wrongly claimed and actually used to pay tax.

Is GST interest charged on the gross tax or the net cash liability?

On the net cash liability — the tax that remains after using input tax credit — when the return is filed within the permitted time.

Can GST interest be paid through ITC?

No. Interest, late fee and penalty are paid in cash from the electronic cash ledger.

GST · Updated for tax year 2026-27

GST Interest Calculator (Section 50)

GST interest under Section 50, CGST Act is the tax paid late × 18% × days of delay ÷ 365. Interest applies only to the part of the tax paid in cash (net of input tax credit). Wrongly claimed and used input tax credit attracts 24%. Enter the amount and dates to see the interest.

Enter your details

Values you enterComputed values

Tax paid late (net cash)

Reason

Due date

Payment date

Result

Days of delay30

Interest rate18% a year

Interest payable₹1,479

Tax + interest₹1,01,479

Disclaimer: Computed to the best of our knowledge, as per the law — including the section changes under the Income-tax Act, 2025 — in force on the date this website was last deployed (28 Sep 2026). Results are estimates for guidance only and are not tax, legal or investment advice. Please verify with the Act, rules and notifications, or a qualified professional, before relying on them. Rates and limits last reviewed on 28 Sep 2026.

How to use the GST Interest Calculator

1
Enter the tax paid late in cash — the net cash liability, after using input tax credit.
2
Choose late payment (18%) or excess ITC claimed and used (24%).
3
Enter the due date and the date you paid (or will pay).
4
The calculator shows the days of delay and the interest to pay.

GST interest formula

Interest = Tax amount × Rate × Days of delay ÷ 365

Late payment of tax: 18% a year, on the net cash liability

Excess ITC claimed and utilised: 24% a year

Days are counted from the day after the due date to the date of payment. Interest must be paid in cash; it cannot be set off against input tax credit.

Worked example

GST of ₹1,00,000 payable in cash was due on 20 May 2026 and paid on 19 June 2026 — 30 days late.
Interest = ₹1,00,000 × 18% × 30 ÷ 365 = ₹1,479.

Interest on net cash liability only

Since September 2020, interest on delayed GST is charged only on the portion paid in cash, not on the tax covered by input tax credit — provided the return is filed within the time allowed. The portal calculates it on this basis.

Frequently asked questions

18% a year, calculated per day, on the tax paid late in cash.