Centre to raise Rs 46,000 cr as late GST payment interest

The government has discovered a new revenue stream to make up for the shortfall in GST collection and is looking to collect ₹46,000 crore as interest on late payment of tax.

Section 50 is very clear that interest liability is required to be paid on the tax liability that is paid belatedly, either through cash or through utilization of input tax credit (ITC). (int. on gross liability) the CBIC letter said.

levying of interest would trigger huge litigations with taxpayers challenging the demand.