GST ITC : Interest on ITC reversal

We have claimed 2lacs ITC in November unfortunately the supplier has not filed GST returns or it's not appearing in GSTR-2A/2B.


So we have reversed the ITC through GSTR-3B in February GSTR filing.

GST was already paid to the extent of ITC availed..

Do we have to pay interest now ?
Replies (7)
Quick Summary
This discussion addresses whether interest is payable when Goods and Services Tax (GST) Input Tax Credit (ITC) is reversed. The user claimed ITC, but it wasn't reflected in their GSTR-2A/2B as the supplier hadn't filed returns. They reversed the ITC in a later GSTR-3B. The consensus is that if the ITC was utilised to pay GST liabilities before reversal, interest is indeed applicable on the amount of ITC wrongly availed and used. This interest payment is generally required voluntarily rather than waiting for a demand notice.

Interest will only be paid if the ITC claimed in November is utilized for payment of taxes.
Yes it was utilised and now reversed

Since you have utilised the ITC for GST payment, you have to pay interest on the ITC which was wrongly availed.  

Is it on demand or voluntarily need to pay ?

It does not depend on demand, if wrongly availed and utilized ITC, then need to pay interest on such ITC.

 

It was not wrong..They will send the ITC in March due to practical issues

Whether interest is applicable on the reversal of ITC under Sec 41 and 42 if the return is filed late?

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