Interest on duplicate ITC or excess ITC reversed voluntarily

24%..... ..

if excess ITC utilised against liability set-off, then int payable. @ 24%

Can you please refer which provision is allowing so..? It would be helpful.

TIA

Please go to refer sec 42(10) & 43(10) with sec 50(3) of CGST act...

Yes agree with the above views

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? 

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...

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)?

 

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

 

I have claimed more ITC by clerical mistake at the same time paid excess tax by clerical mistake. Now, I cannot reverse the ITC as I have already paid excess tax from the ITC. The amount involve is huge though the business is small. and if the interest whether it is 24% or 12% business have to be shut down as cannot pay the interest until and unless the interest is waived from the government side.

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 ??