Whether we have to pay GST Interest

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This discussion clarifies that GST interest is only payable if a wrongly claimed input tax credit was subsequently utilised. If the disallowed input was not used, no interest is due. Recent budget proposals aim to solidify this rule retrospectively.

Daya

Daya (Querist)
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03 February 2022 we have always excess GST Input after adjusting output , But inadvertently some disallowed input claim later when found that it is disallowed as per GST now revert it. Now my Question is that whether we have to pay Interest on Wrongly Claimed Input.

Lekhraj sood

Lekhraj sood (Expert)
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03 February 2022 If this wrong ITC was not utilised then no interest is payable.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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03 February 2022 Interest is payable only if input tax credit is availed and utilized wrongly. This budget proposes retrospective amendment to this effect.

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