Irregular availment of Input Tax Credit

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This query is : Resolved

Quick Summary

A business owner filed their February 2018 GST returns in March 2019, violating Section 16(4) of the CGST Act and receiving a show cause notice. Despite closing the business, they are liable to pay the principal amount and interest. The interest is payable until the date of cancellation, as GST law does not permit waiver of such demands or penalties.

Pawan Kumar Naidu

Pawan Kumar Naidu (Querist)

06 February 2024 Hi,
I filed my feb 2018 GST returns in March 2019 . As per the GSTR-3B
returns by violating the provisions of section 16(4) of CGST Act, 2017).I have received show cause notice, I have already closed my business. Further I can pay the principle liability but the interest amount is farfetched, can you tell me if I need to pay interest till date.Is there any way to avoid it

RAJA P M

RAJA P M (Expert)

06 February 2024 Yes, Interest is payable as per SCN.

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)

07 February 2024 Yes as per GST Law you are liable to Pay Interest because your any demand or interest or penalty upto the date of cancellation cannot be waived or denied.

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