Interest on ITC

This query is : Resolved 
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This discussion clarifies the implications of returning goods after availing Input Tax Credit (ITC). If a seller issues a credit note for returned goods, the buyer must reverse the ITC. However, if the credit note is issued and reflected in your GSTR 2B in the same financial year, no interest is typically payable on the reversed ITC when filing your GSTR 3B.

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(Querist)
08 March 2022 Respected Expert
Please provide Guidance
I Purchased goods in January 2022. availed ITC in Jan as purchase was showing in 2B of Jan. In Feb returned half the goods as it was damaged. Seller issue credit note and showing in Feb GSTR 2B . Now ITC has to be reversed by me (buyer). Does any interest has to be paid in Feb GSTR 3B.

Thanks in advance
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
08 March 2022 No interest payable in such a case.
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CA Puja Sharma

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CA Puja Sharma (Expert)
08 March 2022 No, interest have to be paid because the seller has issued the credit note in Feb 2022
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