Provision of Interest on Delayed Payment of Tax :

As per section 36 (1) of the act, interest shall be payable at a specified rate in case where a person, who fails to pay the tax or any part thereof for the period for which the tax or any part thereof remains unpaid. Rate of interest shall be notified by the Central or a State Government on the recommendation of the Council.

As per section 36 (2) of the act, interest shall be calculated from the first day such tax was due to be paid.

As per section 36 (3) of the act, interest at the prescribed rate shall be payable in case where taxable person makes an undue or excess claim of ITC under section 29 (10) on such undue or excess claim. Manner for computation of interest shall be prescribed in the rules.