Regarding Reversal of ITC

This query is : Resolved 
Quick Summary
If you've wrongly claimed Input Tax Credit (ITC) for the financial year 2020-2021 and haven't utilised it yet, you can reverse it voluntarily. Doing so today means you won't incur any liability for interest or penalties. The law has been amended, particularly Section 50 concerning interest, to accommodate such voluntary reversals.

Profile Image

Profile Image

(Querist)
08 January 2024 Dear Expert,
My client has been taken wrongly ITC (CGST : 8,250 & SGST : 8,250) in F.Y. 2020-2021. But not utilized these ITC as on date. I mean till today above ITC in my credit ledger. Now any liability interest & penalty if ITC revere today ?
Profile Image

CA Altamush Zafar

Profile Image

CA Altamush Zafar (Expert)
08 January 2024 No liability of interest and penalty in your case if you reverse it voluntarily
Profile Image

jignesh sitapara

Profile Image

jignesh sitapara (Querist)
08 January 2024 Thanks for reply
Sir any notification in the matter ?
Profile Image

CA Altamush Zafar

Profile Image

CA Altamush Zafar (Expert)
09 January 2024 The law is itself amended. Refer amendment in section 50 for interest.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries


Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member Rishi JainRishi JainPro Member Krishnamohan GangarajuKrishnamohan GangarajuPro Member Narayan BeraNarayan BeraPro Member KANHA ASSOCIATESKANHA ASSOCIATESPro Member Narasimha MurthyNarasimha Murthy
Subscribe to Pro
Join an elite circle of professionals



Answer Query



Quick Links



Browse by Category