50(3) - how to calculate availed is utilized or not?
This query is : Resolved
15 April 2026
fy2223 dealer filing monthly, availaed big amount in 3b by mistake and reversed after 10 months.
for these 10 months, if utilized, he has to pay interest @24%.p.a.
but how to calculate utilized amount?
my view --> as i dont know how to calculate utilized amount monthly, i did overall.
no op. baalance in electronic credit or cash ledger.
utilized amount = gst1 output tax of full year minus (2b of full year+ cash paid in full year) = utilized @ 24% p.a. (roughly).
broadly, i am right ?
for these 10 months, if utilized, he has to pay interest @24%.p.a.
but how to calculate utilized amount?
my view --> as i dont know how to calculate utilized amount monthly, i did overall.
no op. baalance in electronic credit or cash ledger.
utilized amount = gst1 output tax of full year minus (2b of full year+ cash paid in full year) = utilized @ 24% p.a. (roughly).
broadly, i am right ?
15 April 2026
No, broad annual working is not correct. Under Rule 88B(3), wrong ITC is treated as utilised only to the extent the combined ECL balance (IGST+CGST+SGST) falls below the wrongly availed amount, and interest is payable only on that utilised portion from date of utilisation till reversal.
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