The CBEC has issued notification for Interest on delayed payments, taking excessive input credit or reducing output tax liability and interest on refunds receivable from the department. Please see the table below for the details:
| Sl no | Instances where interest if payable | Rate of Interest |
| 1 | Failure to pay tax or a part there of within prescribed period | 18% |
| 2 | A taxable person who makes an undue or excess claim of input tax credit or undue or excess reduction in output tax liability | 24% |
| 3 | Interest on refunds (in case with hold by the Commissioner in case of appeals or by any other reason) | 6% |
| 4 | Interest on delayed refunds (in case of refunds not paid within 60 days from the date of receipt of refund application) | 6% |
| 5 | Interest on delayed refunds where any claim of refund arises from an order passed by an adjudicating authority or Appellate Authority or Appellate Tribunal or court which has attained finality and the same is not refunded within sixty days from the date of receipt of application filed consequent to such order |
9% |
Please click the link below for the notification.
Karthik & Sunil 