Rule 88B. Manner of calculating interest on delayed
payment of tax.-
(1) In case, where the supplies made during a tax
period are declared by the registered person in the return for the said period
and the said return is furnished after the due date in accordance with
provisions of section 39, except where such return is furnished after
commencement of any proceedings under section 73 or section 74 in respect of
the said period, the interest on tax payable in respect of such supplies shall
be calculated on the portion of tax which is paid by debiting the electronic
cash ledger, for the period of delay in filing the said return beyond the due
date, at such rate as may be notified under sub-section (1) of section 50.
(2) In all other cases, where interest is payable in
accordance with sub section (1) of section 50, the interest shall be calculated
on the amount of tax which remains unpaid, for the period starting from the
date on which such tax was due to be paid till the date such tax is paid, at
such rate as may be notified under sub-section (1) of section 50.
(3) In case, where interest is payable on the amount
of input tax credit wrongly availed and utilised in accordance with sub-section
(3) of section 50, the interest shall be calculated on the amount of input tax
credit wrongly availed and utilised, for the period starting from the date of
utilisation of such wrongly availed input tax credit till the date of reversal
of such credit or payment of tax in respect of such amount, at such rate as may
be notified under said sub-section (3) of section 50.
Explanation.-For the purposes of this sub-rule, -
(1) input tax credit wrongly availed shall be
construed to have been utilised, when the balance in the electronic credit
ledger falls below the amount of input tax credit wrongly availed, and the
extent of such utilisation of input tax credit shall be the amount by which the
balance in the electronic credit ledger falls below the amount of input tax
credit wrongly availed.
(2) the date of utilisation of such input tax credit
shall be taken to be, -
(a) the date, on which the return is due to be
furnished under section 39 or the actual date of filing of the said return,
whichever is earlier, if the balance in the electronic credit ledger falls
below the amount of input tax credit wrongly availed, on account of payment of
tax through the said return; or
(b) the date of debit in the electronic credit ledger
when the balance in the electronic credit ledger falls below the amount of
input tax credit wrongly availed, in all other cases.]
