Section 89, The Goods and Services Tax Act, 2009

If, in addition to an amount of GST which is due and payableby a person under this Act, an amount of interest or penalty is payable, a payment made by the person in respect of the GST, interest or penalty which is less than the total amount due shall be applied in the following order:– 94 95 Act No. 6 of 1991. Recovery of Allocation of payments. (a) first, to reduce the amount of interest due and payable; (b) then, to the extent that the payment exceeds the amount of interest, to reduce the amount of penalty due and payable; and (c) then, to the extent that the payment exceeds the sum of the penalty and interest, to reduce the amount of GST due and payable.