Interest Rate of 18% has been notified by Government vide Notification 13/2017
This interest to be calculated from next day from the due date of payment till actual date of payment
Example
Suppose for month of July
Output GST=100000
Input GST=80000
GST payable=20000
This 20000 we have to pay by 20 August (20 th of Next Month)
View answer
In case we pay the same on 24 August, we are 4 days late
Interest will be calculated as follows
=20000*4/365*18%=39.45
Interest will be rounded off to 39
Total Tax=20000+39=20039