Pralay Chakraborty (Service) (440 Points)
12 June 2018Whether interest is payable if duplicate/excess ITC taken & subsequently reversed voluntary? If so, what is the percentage?
Dibin Divyakumar
(CA)
(743 Points)
Replied 12 June 2018
Pralay Chakraborty
(Service)
(440 Points)
Replied 12 June 2018
RAJA P M
("Do the Right Thing...!!!")
(127475 Points)
Replied 12 June 2018
Pralay Chakraborty
(Service)
(440 Points)
Replied 12 June 2018
| Originally posted by : RAJA P M | ||
 |
Please go to refer sec 42(10) & 43(10) with sec 50(3) of CGST act... |  |
Firstly thank you so much for the reply. Now coming to the discussion, with all due respect, do you really think that these provisions are actually covering a scenario, where tax payer is reversing ITC voluntarily?
RAJA P M
("Do the Right Thing...!!!")
(127475 Points)
Replied 13 June 2018
Pralay Chakraborty
(Service)
(440 Points)
Replied 13 June 2018
| Originally posted by : RAJA P M | ||
|
In sec 50(3) of CGST act says., "A taxable person who makes an **UNDUE or EXECESS CLAIM of INPUT TAX CREDIT" under sub-section (10) of section 42 or undue or excess reduction in output tax liability under sub-section (10) of section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four per cent., as may be notified by the Government on the recommendations of the Council... | |
Yes Sir, I agree with your submission that, Sec 50(3) is specifying interest shall be paid, but where the credit is undue or excess as per Sec 42(10) or 43(10) of CGST Act.
If we travel to Sec 42(10) or 43(10), it says,
"The amount reduced from the output tax liability in contravention of the provisions of sub-section (7) shall be added to the output tax liability..."
My point is, does voluntary reversal fall into the category of Subsection 42(10) or does voluntary reversal of ITC is in contravention of the provisions of sub-section (7)?
Pralay Chakraborty
(Service)
(440 Points)
Replied 13 June 2018
Respected other members, thanks for your valuable time & inputs. In case of any other interpretation, views etc is there in your mind, please share. We can have a good discussion here
TIA
AK Singh
(Government Service)
(2 Points)
Replied 24 September 2018
sateesh
(Student CA Final )
(24 Points)
Replied 20 February 2019
Hi sir, My name is sateesh. I have one Question Regarding Input reversal and Interest.
In books we consider correct figure but while filing 3B return we claimed 21k extra credit. We got to know this error in Feb 2019, mistake was in jul 2018. Till now we have Excess Credit balance our account.
In this case also do we need to pay interest ??
CAclubindia
