GST Interest Calculator – Know Your Exact Interest Liability

Delayed GST payment can quickly increase your tax outflow through statutory interest.
This GST Interest Calculator helps you accurately estimate interest payable at 18% per annum, as prescribed under the CGST Act. Simply enter the tax amount and delay period to understand your potential liability before filing or making payment.

Calculate GST Interest

Calculate interest payable on delayed GST payment

Disclaimer: Interest is calculated as per Section 50 of the CGST Act, 2017 at 18% per annum on delayed payment of GST. Actual liability may vary based on applicable provisions and notifications.

Interest Payable

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Understanding GST Interest on Delayed Payment

Under the GST law, timely payment of tax is as important as timely filing of returns. When GST is paid after the prescribed due date, interest becomes payable automatically, even if the delay is unintentional. This interest is statutory in nature and cannot be waived except in cases specifically notified by the government.
As per Section 50 of the CGST Act, 2017, interest on delayed payment of GST is calculated at 18% per annum. The interest is computed on a daily basis, starting from the day immediately after the due date till the actual date of payment. Even a delay of one day can trigger interest liability, which is why businesses must closely monitor their GST payment timelines.
Using a GST Interest Calculator helps taxpayers estimate this additional cost in advance, allowing better cash-flow planning and avoiding last-minute surprises during return filing.

gst interest calculator
Easily calculate interest on delayed GST payment as per Section 50 of the CGST Act.

Common Situations Where GST Interest Becomes Payable

GST interest liability typically arises in the following situations:

  • Delay in payment of GST after filing returns
  • Delay in filing GSTR-3B resulting in late tax payment
  • Short payment of tax due to calculation errors
  • Excess utilisation of input tax credit (ITC), where applicable

It is important to note that GST interest is not a penalty. It is compensatory in nature and applies automatically by operation of law. The GST portal may calculate interest during return filing, but taxpayers are still responsible for ensuring correctness.

For businesses handling multiple invoices, frequent transactions, or multiple GST registrations, tracking such delays manually can be challenging. This is where systematic accounting and GST compliance tools become extremely useful.

How Accounting Software Helps Avoid GST Interest

One of the most effective ways to avoid GST interest is automation and timely compliance tracking. Manual tracking using spreadsheets often leads to missed due dates, incorrect tax calculations, or oversight in cash flow planning.

Modern GST-enabled accounting software can help businesses by:

  • Tracking GST payment and return due dates
  • Providing alerts for upcoming GST liabilities
  • Ensuring accurate tax calculation on invoices
  • Maintaining clean records for audit and reconciliation

If you are a small business owner, trader, or professional managing GST compliance regularly, using a reliable accounting and GST billing solution can significantly reduce the risk of interest and late fees.

👉 You may explore Vyapar Accounting Software, which offers GST-ready invoicing, return-oriented reports, and compliance support for Indian businesses.

Practical Tips to Minimise GST Interest Liability

Here are a few practical compliance tips every GST-registered person should follow:

  1. Track GST due dates proactively, not just at month-end
  2. Ensure sufficient balance before filing GSTR-3B
  3. Reconcile books with GST returns regularly
  4. Avoid last-day filings, as portal issues can cause delays
  5. Use GST calculators and compliance tools to estimate liabilities in advance

Interest under GST keeps accruing daily until payment is made. Even if returns are filed later with payment, the interest liability does not disappear. Therefore, prevention through timely compliance is always better than correction.

Final Note for Taxpayers

This GST Interest Calculator is intended to help you estimate interest liability quickly and accurately. However, actual interest payable may vary depending on specific facts, notifications, and system-computed values on the GST portal.

For businesses handling GST regularly, combining such calculators with structured accounting software and compliance discipline can go a long way in avoiding unnecessary interest costs.

Coach guiding users on GST interest payable for delayed tax payment using GST calculator
Estimate your GST interest liability at 18% per annum before making payment.

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Disclaimer: This GST Interest Calculator provides an indicative estimate of interest payable on delayed payment of GST based on Section 50 of the CGST Act, 2017 at the applicable rate. Actual interest liability may vary depending on facts, return filings, system-computed values on the GST portal, and applicable notifications.