GST Interest Calculator
Calculate interest on late GST payment (18% p.a.) or excess ITC claimed (24% p.a.) under Section 50. Get CGST/SGST/IGST breakdown instantly.
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Section 50(1) — Interest on delayed GST payment
CGST + SGST split (50-50)
Quick select — GSTR-3B due date (20th of next month):
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Formula Used
Interest = Tax Amount × Rate × Days / 365
Last updated: March 2026 • Section 50 CGST Act
How GST Interest is Calculated
Late Payment — Section 50(1)
When a taxpayer fails to pay GST by the due date, simple interest at 18% per annum is charged from the day after the due date until the actual payment date.
Example
Tax: ₹1,00,000 | Delay: 30 days
Interest = ₹1,00,000 × 18% × 30/365 = ₹1,479
Excess ITC — Section 50(3)
When a taxpayer claims and utilizes ITC they are not entitled to, interest at 24% per annum is charged on the excess amount from the date of utilization.
Example
Excess ITC: ₹50,000 | Period: 60 days
Interest = ₹50,000 × 24% × 60/365 = ₹1,973
Need help with accurate GST filing? Learn how to upload GSTR-1 directly from TallyPrime or use our GST Calculator to compute tax amounts.
Frequently Asked Questions
The interest rate on late GST payment is 18% per annum under Section 50(1) of the CGST Act. This applies when a taxpayer fails to pay the GST liability by the due date. The interest is calculated as simple interest from the day after the due date until the actual date of payment.
The interest rate on excess Input Tax Credit (ITC) claimed and utilized is 24% per annum under Section 50(3) of the CGST Act. This higher rate applies when a taxpayer claims ITC that they are not entitled to and uses it to reduce their tax liability.
GST interest is calculated using the simple interest formula: Interest = Tax Amount × Rate × Number of Days / 365. For example, if you owe ₹1,00,000 in GST and pay 30 days late, the interest would be ₹1,00,000 × 18% × 30 / 365 = ₹1,479. Use TallyPrime to track your GST due dates and avoid late payment interest.
GST interest is calculated from the day following the due date of payment to the actual date of payment. For example, if the GSTR-3B due date is 20th January and you pay on 15th February, interest is calculated for 26 days (from 21st January to 15th February). Learn more about filing deadlines with our e-invoice guide for TallyPrime.
Yes, for intra-state supplies, interest is computed on CGST and SGST components separately. The total tax liability is split 50-50 between CGST and SGST, and interest is calculated on each component individually. For inter-state supplies, interest is calculated on the full IGST amount. Our GST Calculator can help you determine the correct CGST/SGST/IGST split.
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