Interest on delayed payment of tax

Interest on delayed payment of tax.-

1. (1) Every dealer, 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, as may be notified by the Government: Provided that the interest on tax payable in respect of sales 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 17, except where such return is furnished after commencement of any proceedings under section 22 in respect of the said period, shall be payable on that portion of the tax which is paid by debiting the electronic cash ledger.
2. (2) The interest under sub-section
3. (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.
4. (3) Where the input tax credit has been wrongly availed and utilized, the registered dealer shall pay interest on such input tax credit wrongly availed and utilized, at such rate as may be notified by the Government and the interest shall be calculated, in such manner as may be prescribed.