What is GST Penalty and Interest rate ? Explain with examples

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GST Penalty and Interest rates are charges imposed on taxpayers for non-compliance or late payment of GST.

GST Penalty is charged for non-compliance with GST regulations, such as late filing of returns or incorrect reporting.
GST Interest is charged on late payment of GST dues, calculated at a specified rate on the outstanding amount.
The penalty rate for GST non-compliance can range from 10% to 100% of the tax amount due.
The interest rate for late payment of GST is typically 18% per annum.
For example, if a taxpayer fails to file their GST return on time, they may be charged a penalty of 10% of the tax amount due, along with an interest rate of 18% on the outstanding amount.

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