Text
The text below is the rule 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 Rules as published in the Gazette of India is the legal source.
Rule 88B, verbatim (show)
Rule 88B
1[ Rule 88B. Manner of calculating interest on delayed payment of tax.-
(1) In case, where the supplies made during a tax period are declared by the registered person in the return for the said period and the said return is furnished after the due date in accordance with 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, the interest on tax payable in respect of such supplies shall be calculated on the portion of tax which is paid by debiting the electronic cash ledger, for the period of delay in filing the said return beyond the due date, at such rate as may be notified under sub-section (1) of section 50.
2[Provided that where any amount has been credited in the Electronic Cash Ledger as per provisions of sub-section (1) of section 49 on or before the due date of filing the said return, but is debited from the said ledger for payment of tax while filing the said return after the due date, the said amount shall not be taken into consideration while calculating such interest if the said amount is lying in the said ledger from the due date till the date of its debit at the time of filing return.]
(2) In all other cases, where interest is payable in accordance with sub section (1) of section 50, the interest shall be calculated on the amount of tax which remains unpaid, for the period starting from the date on which such tax was due to be paid till the date such tax is paid, at such rate as may be notified under sub-section (1) of section 50.
(3) In case, where interest is payable on the amount of input tax credit wrongly availed and utilised in accordance with sub-section (3) of section 50, the interest shall be calculated on the amount of input tax credit wrongly availed and utilised, for the period starting from the date of utilisation of such wrongly availed input tax credit till the date of reversal of such credit or payment of tax in respect of such amount, at such rate as may be notified under said sub-section (3) of section 50.
Explanation.-For the purposes of this sub-rule, -
(1) input tax credit wrongly availed shall be construed to have been utilised, when the balance in the electronic credit ledger falls below the amount of input tax credit wrongly availed, and the extent of such utilisation of input tax credit shall be the amount by which the balance in the electronic credit ledger falls below the amount of input tax credit wrongly availed.
(2) the date of utilisation of such input tax credit shall be taken to be, -
(a) the date, on which the return is due to be furnished under section 39 or the actual date of filing of the said return, whichever is earlier, if the balance in the electronic credit ledger falls below the amount of input tax credit wrongly availed, on account of payment of tax through the said return; or
(b) the date of debit in the electronic credit ledger when the balance in the electronic credit ledger falls below the amount of input tax credit wrongly availed, in all other cases.]
1. Inserted vide Notification No. 14/2022-CT dated. 05.07.2022 w.e.f. 01.07.2017.
2. Inserted vide Notification No. 12/2024-CT dated. 10.07.2024.
3. Inserted (w.e.f. 01.11.2024) ) vide Notification No. 20/2024-CT dated 08.10.2024.
Sub-rule (1)
88B(1)Same-period late return
the portion of tax which is paid by debiting the electronic cash ledgerRule 88B(1)
The route requires same-period supplies declared in that period’s late section 39 return. It excludes filing after commencement of the stated section 73, 74 or 74A proceedings for that period. The basis is the cash-paid portion and the delay beyond the return due date, using the notified section 50(1) rate.
Questions to answer on the fileSupplies declared in belated return for same period5 questions
Questions to answer on the fileCash-portion interest basis and delay period7 questions
88B(1) provisoCash continuously held
lying in the said ledger from the due date till the date of its debitRule 88B(1) proviso
The qualifying amount must enter the cash ledger under section 49(1) by the return due date. It must remain there continuously until debit for tax when the late return is filed. That amount is excluded from the stated interest calculation.
Questions to answer on the file6 questions
88B(2)Other unpaid tax
from the date on which such tax was due to be paid till the date such tax is paidRule 88B(2)
Other cases attracting section 50(1) use the tax remaining unpaid. The calculation uses the stated due-to-payment period and the applicable notified rate.
Questions to answer on the file7 questions
Sub-rule (3)
88B(3)Wrongly availed and utilised credit
starting from the date of utilisation of such wrongly availed input tax creditRule 88B(3)
The section 50(3) route requires wrong availment and utilisation, rather than wrong availment alone. Its period ends at reversal or tax payment in respect of the amount. The rate is the notified section 50(3) rate.
Questions to answer on the file7 questions
88B(3) Explanation (1)Utilisation extent
the balance in the electronic credit ledger falls below the amount of input tax credit wrongly availedRule 88B(3) Explanation (1)
The shortfall below the wrongly availed pool determines the utilisation extent. Credit-ledger balance and the wrongly availed amount must relate to the same utilisation event.
Questions to answer on the filePositive utilisation extent when balance falls below4 questions
Questions to answer on the fileUtilisation date for return payment causing fall4 questions
Questions to answer on the fileUtilisation date in all other cases3 questions
88B(3) Explanation (2)Utilisation date
the actual date of filing of the said return, whichever is earlierRule 88B(3) Explanation (2)
For a fall caused by tax payment through a return, use the earlier of its due date and actual filing date. For other cases, use the debit date causing the ledger balance to fall below the wrongly availed amount.
Frequently asked questions
Does wrong availment alone supply the interest base under sub-rule (3)?
Sub-rule (3) concerns credit wrongly availed and utilised. The explanation measures utilisation through the stated credit-ledger shortfall.
Rule 88B(3)
Does every cash balance reduce late-return interest?
The proviso requires the identified amount to be credited by the due date, remain continuously until debit, and be debited for tax on filing that return.
Rule 88B(1) proviso
Which utilisation date applies to a return-payment shortfall?
The explanation uses the earlier of the section 39 return due date and its actual filing date. Other shortfall-causing debits use their debit date.
Rule 88B(3) Explanation (2)
Amendment history
The CBIC text carries 3 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Change |
|---|---|
| 1 | Inserted vide Notification No. 14/2022-CT dated. 05.07.2022 w.e.f. 01.07.2017.[2] |
| 2 | Inserted vide Notification No. 12/2024-CT dated. 10.07.2024.[3] |
| 3 | Inserted (w.e.f. 01.11.2024) ) vide Notification No. 20/2024-CT dated 08.10.2024.[4] |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 50 of the CGST Act, 2017 | Section 50 of the CGST Act, 2017 prescribed by this provision | 88B(1) "at such rate as may be notified under sub-section (1) of section 50" |
| Section 39 of the CGST Act, 2017 | this provision requires Section 39 of the CGST Act, 2017 | 88B(1) "in accordance with provisions of section 39" |
| Section 49 of the CGST Act, 2017 | this provision requires Section 49 of the CGST Act, 2017 | 88B(1) proviso "sub-section (1) of section 49" |
| Section 73 of the CGST Act, 2017 | this provision requires Section 73 of the CGST Act, 2017 | 88B(1) "section 73" |
| Section 74 of the CGST Act, 2017 | this provision requires Section 74 of the CGST Act, 2017 | 88B(1) "section 74" |
| Section 74A of the CGST Act, 2017 | this provision requires Section 74A of the CGST Act, 2017 | 88B(1) "section 74A" |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this rule, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (1)
| 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. |
Notifications (3)
| Number | Date | Subject |
|---|---|---|
| Notification No. 20/2024-Central Tax | 8 October 2024 | Seeks to make amendments (Second Amendment 2024) to the CGST Rules, 2017 |
| Notification No. 12/2024-Central Tax | 10 July 2024 | Seeks to make amendments (Amendment, 2024) to the CGST Rules, 2017. |
| Notification No. 26/2022-Central Tax | 26 December 2022 | Seeks to make fifth amendment (2022) to CGST Rules |
See also
- Section 50 of the CGST Act, 2017: interest on delayed payment of tax
- Section 39 of the CGST Act, 2017: furnishing of returns
- Section 49 of the CGST Act, 2017: payment of tax, interest, penalty and other amounts
- 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. "Rule 88B. Manner of calculating interest on delayed payment of tax". Central Goods and Services Tax Rules, 2017, CBIC tax information portal, with amendment footnotes 1 to 3. Retrieved 17 September 2026.
- Notification No. 14/2022-Central Tax, dated 5 July 2022: Seeks to make amendments (First Amendment, 2022) to the CGST Rules, 2017. Cited in CBIC footnote 1.
- Notification No. 12/2024-Central Tax, dated 10 July 2024: Seeks to make amendments (Amendment, 2024) to the CGST Rules, 2017. Cited in CBIC footnote 2.
- Notification No. 20/2024-Central Tax, dated 8 October 2024: Seeks to make amendments (Second Amendment 2024) to the CGST Rules, 2017. Cited in CBIC footnote 3.
External links
- CGST Rules, 2017, Rule 88B on the CBIC tax information portal