Rate of interest payable by a dealer has been graded-
With effect from 01.04.2015 the rate of interest has been graded into three different rates in the following manner depending on delay in paying tax :-
| Sl. No. | Period of delay for which interest is payable | Rate of interest |
| 1 | Up to the first 90 days | 1 % per month |
| 2 | After the first 90 days and up to 300 days | 1.5 % per month |
| 3 | After the first 300 days | 2 % per month |
Earlier to 01.04.2015 the Rate of Interest was 12% per annum.