Yes, interest on GST can be waived under specific circumstances, primarily through the GST Amnesty Scheme 2025 (Section 128A of the CGST Act). This scheme allows for the waiver of interest and penalties on demand notices issued under Section 73 (non-fraudulent cases) for the financial years 2017-18, 2018-19, and 2019-20, provided the tax liability is paid by March 31, 2025.
Avail the new GST Amnesty Scheme 2024, introduced via Section 128A for conditional waiver of interest and penalties for tax demands from FY 2017-18 to 2019-20 under Section 73. To qualify, taxpayers must fully pay outstanding tax dues by March 31, 2025.
On Navigating to 'My Applications' page, the taxpayer has to select 'Apply for Waiver Scheme under Section 128A' option under 'Application type' dropdown. If the taxpayer wants to file a new application for availing waiver on Interest and Penalty, the taxpayer can click on 'New Application' button.
Under GST law, most ordinary interest receipts from loans, deposits, etc. are exempt, effectively making the GST rate on such interest zero. However, specific categories of interest, such as credit‐card interest or penalties for late payment, fall out of this exemption and are taxable at the standard rate, usually 18%.
Steps to Apply for the GST Waiver
Here's a simplified breakdown of the process under Section 128A: File an Application on the GST Portal: Apply electronically using FORM GST SPL-01 for non-fraudulent notices or FORM GST SPL-02 for certain orders. Include details of the tax payments made using FORM GST DRC-03.
The GST Amnesty Scheme under Section 128A grants total waiver of pending interest and penalty amount if the tax dispute amount is paid by an eligible taxpayer on or before March 31, 2025.
The rate of interest shall be 9% (Notification No. 13/2017-Central Tax dated 28.06. 2017). The interest will be calculated from the date of pre-deposit to the date of actual refund of the deposit.
fees you pay that are associated with your bank like ATM fees, monthly account fees, or interest on your loans and credit cards do not include GST.
Examples of GST exempt services are bank fees, insurance, wages and interest on loans. See this list of the most common goods and services that are exempt from GST/HST.
Interest on Late Payment of GST:
An interest on late payment of GST is of 18% per annum and will be charged for the days after the due date.
GST Notification 8/2025-Central Tax dt. 23-January-2025
Notification No. 08/2025 waives the late fee under section 47 of the Central Goods and Services Tax (CGST) Act for the annual return (FORM GSTR-9) for the financial years 2017-18 to 2022-23.
GST Amnesty Scheme 2025, as per Section 128A of the CGST Act, is a relief mechanism where the taxpayers are provided an opportunity to clear outstanding dues by exempting historical tax dues from penalty and interest.
To avail of this waiver, the condition is that the full tax demanded is paid on or before 31.03. 2025. Given the above, Rule 164 of CGST rules, 2017 was notified through Notification No. 20/2024 dated.
If you earn interest income of up to ₹10,000 from a savings account, you can claim a tax deduction under Section 80TTA of the IT Act. However, if this amount exceeds ₹10,000, it is taxable per applicable slab rates.
The following category of tax persons are exempted from payment of 1% of GST in Cash 1. Registered taxpayers who have paid income tax above Rs 1.00 in Income Tax during the last two years continuously 2. Taxpayers who have zero-rated supplies without payment of duty and claimed refund of more than Rs 1.00 lac 3.
Good news for GST registered taxpayers who wish to avail the GST Amnesty Scheme waiver of interest and penalty under section 128A announced in Budget 2024. GST SPL 02 form, using which a GST registered person can apply for this Amnesty Scheme, has now been enabled on the GST portal.
Interest received by or accrued to an individual is taxable. However, an exemption applies to the first ZAR 23,800 of local interest income (ZAR 34,500 for taxpayers who are 65 years of age or older).
Interest received from a local entity (e.g. local bank and local company) is payment for an exempt supply of financial service is under the 4th Schedule of GST Act. You do not need to account for GST on the interest received.
The Tribunal's ruling that interest on GST and GST late filing fee is deductible under section 37(1) of the Income-tax Act, 1961, is significant for businesses.
There are six supplies which are not subject to GST : Financial services such as bank charges and interest. This also includes life insurance.
No, interest income under GST is generally exempt from taxation. Interest earned from financial institutions, loans, or deposits is categorized as a financial service and does not attract GST, as it falls under the exempted category.
The High Court held that the Appellate Authority has no power to waive the mandatory statutory requirement of pre-deposit prescribed under Section 107(6) of the CGST Act and the West Bengal GST Act.
Interest Charges on Late GST/HST Payments
The Canada Revenue Agency charges interest on overdue GST/HST balances and insufficient instalment payments. Interest rates are set by the CRA and compound daily from the due date until full payment.