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Section50
The Central Goods and Services Tax Act, 2017

Interest on delayed payment of tax

In force Act 12 of 2017 As on 15 Oct 2026

Act 12 of 2017 Ministry Finance Enacted 12 Apr 2017 Cited by 17 provisions Instruments 10

Commencement. 22nd June, 2017 for sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30, 139, 146 and 164 1st July, 2017 for sections 6 to 9, 11 to 21, 31 to 41, 42 (except proviso to sub-section (9) of S 42), 43 (except proviso to subsection (9) of S 43), 44 to 50, 53 to 138, 140 to 163, 165 to 174.

Section 50 of the Central Goods and Services Tax Act, 2017 deals with interest on delayed payment of tax. 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, i The Act was enacted on 12 Apr 2017.

(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 2[or section 74A] 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) 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.

3[(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.]

Section 50, The Central Goods and Services Tax Act, 2017 (Act 12 of 2017).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

  1. s. 39 Furnishing of returns
  2. s. 73 Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts
  3. s. 74 Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts
  4. s. 74A 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

Referred to by 17

  1. s. 16 Eligibility and conditions for taking input tax credit
  2. s. 51 Tax deductions at source
  3. s. 52 Collection of tax at stores
  4. s. 60 Provisional assessment
  5. s. 62 Assessment of non-filers of returns
  6. s. 73 Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts
  7. s. 74 Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts
  8. s. 74A 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
  9. s. 76 Tax collected but not paid to Government
  10. s. 80 Payment of tax and other amount in instalments
  11. s. 128A Waiver of interest or penalty or both relating to demands raised under section 73, for certain tax periods
  12. Finance Act, 2019 (No. 2) s. 100 Amendment of section 50

and 5 more

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

  1. Tamilnadu State Transport Corporation (Villupuram) Ltd. v. Additional Commissioner of Central Tax

    High Court 14 Mar 2025 Binding (High Court) WP 9793/2024; Final Order 14.03.2025 (Krishnan Ramasamy J., Madras HC); clarification 21.04.2025

    Court's Decision & Legal Precedent

    DATE VERIFIED Final Order dated 14.03.2025 (order-13.pdf): Where the taxpayer had deposited the exact outward-tax liability into the electronic cash ledger on time but could not file GSTR-3B / debit the ledger due to GST-portal digital-signature glitches, interest under CGST/TNGST s.50 does not continue to run merely because the return debit occurred later. Following Eicher Motors and Rule 88B(1) proviso (clarificatory), interest stops once the amount is credited to the cash ledger on/before the due date and remains there until debit. Impugned OIO quashed to the extent of interest; late fee/penalty for delayed return left open.

    On this section: s.50 — interest on delayed tax payment does not accrue after timely deposit into the electronic cash ledger merely because GSTR-3B debit is later (Rule 88B(1) proviso / Eicher Motors line).

    Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.

Judgments citing this section

These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.

  1. High Court 15 Jan 2024 KLHC010628892023

    … THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 15.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 J U D G M E N T The petitioner, a proprietorship firm, has filed the present writ petition before this Court impugning the show cause notice in Form GST DRC-01, Ext.P1, issued under Sections 73 and 50 of the Central Goods and Services Tax Act, 2017. The petitioner is a registered dealer under the provisions of the Central Goods and Services Tax Act/State Goods and Services Tax Act, 2017 ('CGST/SGST Act', for short) and is engaged in trading of edible grains, edible oils and other groceries. It avails input tax …

    Read this order on eCourtsIndia

  2. High Court 21 Nov 2019 KLHC010822752019

    … Therefore W.P.(C) No.31184/2019 is tagged on to the writ appeal and both the cases are disposed of through this common judgment. 2. Issue pertains to the sustainability of a proceedings initiated for recovery of the amount of interest due under Section 50 of the Central Goods and Services Tax Act, 2017 ('CGST Act' for short) and the consequential garnishee proceedings initiated under Section 79 (1) (c) of the said Act. 3. Exhibit P16 notice was issued to the appellant/petitioner requiring them to remit a sum of Rs.1,95,01,865.57 towards interest due with respect …

    Read this order on eCourtsIndia

Made under this section, and citing it

4 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.

Another 6 instruments name this provision in its title or its text without being made under it.

All subordinate legislation

Questions about Section 50

What have the courts held on Section 50 of the Central Goods and Services Tax Act?

Tamilnadu State Transport Corporation (Villupuram) Ltd. v. Additional Commissioner of Central Tax (14 Mar 2025) is the leading judgment on this section among those set out below: s.50 — interest on delayed tax payment does not accrue after timely deposit into the electronic cash ledger merely because GSTR-3B debit is later (Rule 88B(1) proviso / Eicher Motors line).

How do I find court cases under Section 50 of the Central Goods and Services Tax Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CGST Act 50, section 50 CGST Act, section 50 of the Central Goods and Services Tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Tamilnadu State Transport Corporation (Villupuram) Ltd. v. Additional Commissioner of Central Tax (14 Mar 2025).

What should I read with Section 50 of the Central Goods and Services Tax Act, and has it changed?

Its own text turns on section 39 (Furnishing of returns), section 73 (Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts), section 74 (Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts), section 74A (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), so none of them can safely be read on its own. 17 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 4: most recently Notification No. 31/2020 -Central Tax dated 03.04.2020 (2020), then Notification No. 51/2020 -Central Tax dated 24.06.2020 (2020), and 2 more.

When was Section 50 of the Central Goods and Services Tax Act enacted?

Section 50 of the Central Goods and Services Tax Act, cited as CGST Act 50, was enacted on 12 Apr 2017 as Act 12 of 2017. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.