GST ITC interest

This discussion clarifies the 24% interest charged on undue or excess claims of Goods and Services Tax (GST) Input Tax Credit (ITC). Undue ITC refers to claims made without a valid tax invoice or when the invoice is unavailable. It also covers instances where an invoice for one month is claimed in an earlier tax period, or if the ITC is wrongly claimed or ineligible under Section 17(5) of the GST Act.