hi all, I had wrongly claimed excess itc but till date I had not utilised same. if I am reversing same then I have to pay interest on that? or there will be no interest because I had not used?
TIA
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Quick Summary
This discussion addresses the implications of wrongly claiming excess Input Tax Credit (ITC) that has not been utilised. The consensus is that if the excess ITC has been claimed but not used, no interest is payable upon reversal. Interest is generally only applicable if the claimed ITC has been utilised. Any interest previously paid on an excess claim that was subsequently reversed should be refunded to your electronic cash ledger.
Any interest paid earlier on excess claim of ITC will be refunded by crediting the amount to the recipient's Electronic Cash Ledger. In case of duplication of ITC claim, no refund will be allowed as it is a contravention of the GST provisions.