Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 50, verbatim (show)
Section 50
*Section 50. Interest on delayed payment of tax.-
(1) Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council:
1[Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 3[or section 74A] in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.]
(2) The interest under sub-section (1) shall be calculated, in such manner as may be prescribed, from the day succeeding the day on which such tax was due to be paid.
2[(3) Where the input tax credit has been wrongly availed and utilised, the registered person shall pay interest on such input tax credit wrongly availed and utilised, at such rate not exceeding twenty-four per cent. as may be notified by the Government, on the recommendations of the Council, and the interest shall be calculated, in such manner as may be prescribed]
*Enforced w.e.f. 1st July, 2017.
1. Substituted (w.e.f. 1st July, 2017) by s. 112 of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021 for
"[Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.]"
Brought into force on 1st June, 2021 vide Notification No. 16/2021-Central Tax dated 1st June, 2021.
2. Substituted (w.e.f. 1st July, 2017) by s. 111 of The Finance Act 2022 (No. 06 of 2022) - brought into force w.e.f 05-07-2022 vide Notification No. 9/2022-C.T, dated 05-07-2022 .
3. Inserted by section 126 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.
Sub-section (1)
50(1), payment failureUnpaid tax period
shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interestSection 50(1), payment failure
The duty follows failure to pay tax or part of it within the prescribed period. The person must pay interest on their own for the period of non-payment.
Questions to answer on the file7 questions
50(1), rateNotified delayed-tax rate
interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the CouncilSection 50(1), rate
The Government notifies the rate on the Council's recommendations. Eighteen per cent. is the ceiling within which that notification operates.
50(1), provisoCash-ledger basis and proceedings exception
shall be levied on that portion of the tax that is paid by debiting the electronic cash ledgerSection 50(1), proviso
The supplies must be declared in the section 39 return for the same period, furnished after its due date. The proviso excepts returns furnished after proceedings under sections 73, 74 or 74A commence for that period. Footnote 3 gives no commencement date for the section 74A insertion.
Questions to answer on the file5 questions
50(2)Starting day and calculation
The interest under sub-section (1) shall be calculated, in such manner as may be prescribed, from the day succeeding the day on which such tax was due to be paid.Section 50(2)
The day after the tax due date starts delayed-tax interest. Calculation follows the prescribed manner for interest under sub-section (1).
Questions to answer on the file4 questions
Sub-section (3)
50(3), triggerWrong availment and utilisation
Where the input tax credit has been wrongly availed and utilised, the registered person shall pay interest on such input tax credit wrongly availed and utilisedSection 50(3), trigger
The registered person must have both wrongly availed and utilised the credit. The law does not settle when wrongly availed credit is also utilised.
Questions to answer on the file8 questions
50(3), rate and calculationCredit-related rate
at such rate not exceeding twenty-four per cent. as may be notified by the Government, on the recommendations of the Council, and the interest shall be calculated, in such manner as may be prescribedSection 50(3), rate and calculation
The Government notifies the rate within the twenty-four per cent. ceiling on the Council's recommendations. The prescribed manner governs calculation for the credit wrongly availed and utilised.
Other questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope the section as a whole
Questions to answer on the file2 questions
Frequently asked questions
Are eighteen and twenty-four per cent. automatically the applicable rates?
The figures are statutory ceilings for rates notified by the Government on the Council's recommendations. The respective notification supplies the rate within each ceiling.
Section 50(1) and 50(3)
When does delayed-tax interest begin?
Interest under sub-section (1) begins on the day after tax was due. Its calculation follows the prescribed manner.
Section 50(2)
When does the late-return proviso use the cash-ledger portion?
It applies to supplies declared in the section 39 return for the same period, furnished late, subject to the proceedings exception. A return furnished after the named proceedings commence for that period is excepted.
Section 50(1), proviso
When is wrongly availed credit also utilised?
The law does not settle when utilisation occurs. Sub-section (3) requires both wrong availment and utilisation.
Section 50(3)
Amendment history
The CBIC text carries 4 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Change | Instrument | Effective from |
|---|---|---|---|
| Enforced the section | — | w.e.f. 1st July, 2017 | |
| 1 | Substituted the whole proviso to sub-section (1) with effect from 1st July, 2017. The words it replaced, which the source sets out, are the same proviso word for word (the words "or section 74A" came later, at marker 3), so the substitution re-enacted the proviso with retrospective effect from 1st July, 2017 rather than changing it. The proviso appears to have first come in by section 100 of the Finance (No. 2) Act, 2019 (23 of 2019), which Notification No. 63/2020-Central Tax dated 25th August, 2020 describes as amending section 50 and brings into force on 1st September, 2020; the 2019 Act was not read, so this is unverified | s. 112 of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021[2][3][4][5] | retrospective: expressed w.e.f. 1st July, 2017; brought into force on 1st June, 2021 vide Notification No. 16/2021-Central Tax dated 1st June, 2021 |
| 2 | Substituted the whole of sub-section (3). The source does not set out the wording it replaced | s. 111 of The Finance Act 2022 (No. 06 of 2022)[6][7] | retrospective: expressed w.e.f. 1st July, 2017; brought into force w.e.f. 05-07-2022 vide Notification No. 9/2022-C.T, dated 05-07-2022 |
| 3 | Inserted the words "or section 74A" in the proviso to sub-section (1) | section 126 of the Finance (No. 2) Act, 2024 (No. 15 of 2024) dated 16.08.2024; the source prints the name as "The Finance Act (No. 2) Act, 2024 No. 15 of 2024"[8][9] | 1st November, 2024, vide Notification No. 17/2024-Central Tax dated 27.09.2024; the source itself gives only the Act's date |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 39 | the proviso to 50(1) requires Section 39 | proviso "furnished after the due date in accordance with the provisions of section 39" |
| Section 73, Section 74, Section 74A | the proviso to 50(1) branches on Section 73, Section 74, Section 74A | proviso "except where such return is furnished after commencement of any proceedings under section 73 or section 74 3[or section 74A]" |
| Section 51 | Section 51 requires 50(1) | 51(6) "he shall pay interest in accordance with the provisions of sub-section (1) of section 50" |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (7)
| Number | Date | Subject |
|---|---|---|
| Circular No. 192/04/2023-GST | 17 July 2023 | Clarification on charging of interest under section 50(3) of the CGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof. |
| Circular No. 171/03/2022-GST | 6 July 2022 | Clarification on various issues relating to applicability of demand and penalty provisions under the Central Goods and Services Tax Act, 2017 in respect of transactions involving fake invoices. |
| Circular No. 174/06/2022-GST | 6 July 2022 | Prescribing manner of re-credit in electronic credit ledger using FORM GST PMT-03A. |
| Circular No. 143/13/2020-GST | 10 November 2020 | Provisions relating to Quarterly Return Monthly Payment Scheme |
| Circular No. 137/07/2020-GST | 13 April 2020 | Circular clarifying issues in respect of challenges faced by registered persons in implementation of provisions of GST issued - Reg |
| Circular No. 125/44/2019-GST | 18 November 2019 | Seeks to clarify the fully electronic refund process through FORM GST RFD-01 and single disbursement. amended by a later instrument |
| Circular No. 94/13/2019-GST | 28 March 2019 | Seeks to clarify certain refund related issues under GST. Rescinded vide Circular No. 125/44/2019 - GST dated 18.11.2019. rescinded by a later instrument |
Notifications (18)
| Number | Date | Subject |
|---|---|---|
| Notification No. 07/2024-Central Tax | 8 April 2024 | Seeks to provide waiver of interest for specified registered persons for specified tax periods made under this section |
| Notification No. 38/2023-Central Tax | 4 August 2023 | Seeks to make amendments (Second Amendment , 2023) to the CGST Rules, 2017. |
| Notification No. 06/2023-Central Tax | 31 March 2023 | Amnesty scheme for deemed withdrawal of assessment orders issued under Section 62 amended by a later instrument |
| Notification No. 26/2022-Central Tax | 26 December 2022 | Seeks to make fifth amendment (2022) to CGST Rules |
| Notification No. 19/2022-Central Tax | 28 September 2022 | Seeks to make amendments (Second Amendment, 2022) to the CGST Rules, 2017. |
| Notification No. 14/2022-Central Tax | 5 July 2022 | Seeks to make amendments (First Amendment, 2022) to the CGST Rules, 2017 |
| Notification No. 08/2022-Central Tax | 7 June 2022 | Seeks to provide waiver of interest for specified electronic commerce operators for specified tax periods made under this section |
| Notification No. 18/2021-Central Tax | 1 June 2021 | Seeks to provide relief by lowering of interest rate for a specified time for tax periods March, 2021 to May, 2021. made under this section |
| Notification No. 08/2021-Central Tax | 1 May 2021 | Seeks to provide relief by lowering of interest rate for the month of March and April, 2021 made under this section |
| Notification No. 51/2020-Central Tax | 24 June 2020 | Seeks to provide relief by lowering of interest rate for a prescribed time for tax periods from February, 2020 to July, 2020. made under this section |
| Notification No. 31/2020-Central Tax | 3 April 2020 | Seeks to provide relief by conditional lowering of interest rate for tax periods of February, 2020 to April, 2020. made under this section |
| Notification No. 16/2020-Central Tax | 23 March 2020 | Seeks to make third amendment (2020) to CGST Rules. |
| Notification No. 16/2019-Central Tax | 29 March 2019 | Seeks to make Second Amendment (2019) to CGST Rules. |
| Notification No. 15/2017-Central Tax | 1 July 2017 | Amending CGST Rules notification 10/2017-CT dt 28.06.2017 |
| Notification No. 10/2017-Union Territory Tax | 30 June 2017 | Notifies Fixing of rate of interest per annum amended by a later instrument |
| Notification No. 10/2017-Central Tax | 28 June 2017 | Seeks to amend CGST Rules notification no 3/2017-Central Tax dt 19.06.2017 amended by a later instrument |
| Notification No. 13/2017-Central Tax | 28 June 2017 | Seeks to prescribe rate of interest under CGST Act, 2017 amended by a later instrument made under this section |
| Notification No. 06/2017-Integrated Tax | 28 June 2017 | Seeks to prescribe rate of interest under CGST Act, 2017 amended by a later instrument |
Unsettled questions
The words of section 50 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.
- When is input tax credit that has been wrongly availed also "utilised"? Sub-section (3) charges interest only where both have happened and nowhere says what utilisation is.
See also
- Section 39 of the CGST Act, 2017: furnishing of returns
- Section 73 of the CGST Act, 2017: determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any willful-misstatement or suppression of facts
- Section 74 of the CGST Act, 2017: determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any willful-misstatement or suppression of facts
- Section 74A of the CGST Act, 2017: determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward
References
- Central Board of Indirect Taxes and Customs. "Section 50. Interest on delayed payment of tax". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 4. Retrieved 17 September 2026.
- The Finance Act, 2021. Cited in CBIC footnote 1.
- The Finance (No. 2) Act, 2019. Cited in CBIC footnote 1.
- Notification No. 16/2021-Central Tax, dated 1 June 2021: Seeks to appoint 01.06.2021 as the day from which the provisions of section 112 of Finance Act, 2021, relating to amendment of section 50 of the CGST Act, 2017 shall come into force. Cited in CBIC footnote 1.
- Notification No. 63/2020-Central Tax, dated 25 August 2020: Seeks to notify the provisions of section 100 of the Finance (No. 2) Act, 2019 to amend section 50 of the CGST Act, 2017 w.e.f. 01.09.2020. Cited in CBIC footnote 1.
- The Finance Act, 2022. Cited in CBIC footnote 2.
- Notification No. 09/2022-Central Tax, dated 5 July 2022: Seeks to notify the provisions of clause (c) of section 110 and section 111 of the Finance Act, 2022. Cited in CBIC footnote 2.
- The Finance (No. 2) Act, 2024. Cited in CBIC footnote 3.
- Notification No. 17/2024-Central Tax, dated 27 September 2024: Seeks to notify the provisions of Finance (No. 2) Act, 2024. Cited in CBIC footnote 3.
External links
- CGST Act, 2017, Section 50 on the CBIC tax information portal