Interest and penalty for non reverse of ITC.(fy 19-20)
Sanjib (STUDENT) (65 Points)
06 September 2022
Interest and penalty applicable for non reverse of ITC (fy 19-20). Please suggest me.
Pankaj Rawat
(GST Practitioner)
(55047 Points)
Replied 06 September 2022
CA Altamush Zafar
(GST Consultant)
(15961 Points)
Replied 09 September 2022
Pankaj Rawat
(GST Practitioner)
(55047 Points)
Replied 09 September 2022
@ CA ALTAMUSH ZAFAR
IF UTILISED THEN REVERSAL WITH INTEREST IS @ 24%
FINANCE ACT 2022-23 CLAUSE 111 GOT EFFECTIVE, AMENDING SECTION 50 OF CGST ACT & THE RATE OF INTEREST FOR ITC AVAILED & UTILISED IS 24% THEREIN (NOTI 9/22 CT)
AND CLAUSE 115,118,121 WHICH IS AMENDING NOTIFICATION 13/2017 CT WHICH IS AMENDING INTEREST RATE TO 18% IS YET TO BE NOTIFY , SINCE THESE CLAUSE OF FINANCE ACT 2022-23 NOT BEING NOTIFIED TILL DATE ,THE INTEREST RATE APPLICABLE 24%
(REFER SECTION 50(3) AS NOTIFIED)
Pankaj Rawat
(GST Practitioner)
(55047 Points)
Replied 09 September 2022
SORRY
YES ITS 18% .
AS PER FINANCE ACT 2022-23 CLAUSE UPTO 113 NEED TO BE NOTIFY BY NOTIFICATION & REST WILL EFFECTIVE FROM 01/04/2022
SO CLAUSE 115 OF FINANCE ACT ALREADY BEING EFFECTIVE FROM 01/04/2022
CA Altamush Zafar
(GST Consultant)
(15961 Points)
Replied 09 September 2022
Correct, that clause doesn't need a notification notifying it. The powers to amend directly were taken in the Finance Act itself. Quite a novel way to do it as far as GST is concerned.
That is why most people quote the incorrect rate due to the manner of amendment.
CAclubindia
