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Interest on excess itc

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kumar

student

248 Points Posted on 05 May 2020

hello
I claimed excessive itc in sep 19
and returned in Nov 19
but no interest paid for the above itc till date.
what shall I do ?

Replies (5)

Quick Summary

If you've claimed excess Input Tax Credit (ITC) and subsequently reversed it, you may owe interest. The interest is typically calculated from the date you filed your return in September 2019 until the date you filed your return in November 2019. It's advisable to pay this interest promptly, either in subsequent returns or before filing your annual return for the 2019-20 financial year to avoid potential issues with the tax authorities.

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 05 May 2020

If claim excess ITC then reverse the excess claimed amount with interest...

CA Raghavendra Reddy M

40 Points Posted on 05 May 2020

It is better to pay at the earliest before Sep 20 GSTR-3B returns. If not paid before Sep 20 same has to be paid at the time of annual return. Or if don't want to pay... as there is no interest on interest, no need to pay the same has to be paid when department finds but it is risky.

Interest to be paid for the period : SEP 19 Return filed date to NOV 19 return filed date.

Aashok Kumar Sharma

Finance/Compliance Consultant

69623 Points Posted on 05 May 2020

You can pay the same in the subsequent returns, or before Sept 2020 GSTRB (Due date being 20th Oct 2020) or before filling annual return for 19-20 (on or before 31st Dec 2020) Better to come clean and clear ASAP