(1) Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made there under, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council.
[Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the 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, shall be payable on that portion of the tax which is paid by debiting the electronic cash ledger.]129
(2) The interest under sub-section (1) shall be calculated, in such manner as may be prescribed, from the day succeeding the day on which such tax was due to be paid.
[(3) Where the input tax credit has been wrongly availed and utilised, the
registered person shall pay interest on such input tax credit wrongly availed
and utilised, at such rate not exceeding twenty-four per cent. As may be
notified by the Government, on the recommendations of the Council, and the
interest shall be calculated, in such manner as may be prescribed.]130
129. Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P. Act No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated Lucknow, December 27, 2021 and shall be deemed to have been substituted w.e.f. the 01 July, 2017. Prior to substitution proviso reads as under :- [Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the 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, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.]* 130. Substituted by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022. W. e. f. 1-07-2017.