GST ITC : Interest on ITC reversal

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.