Interest on Excess ITC claimed.

Interest is calculated for the period July 2017 To March 2018, between the period some times closing balance of electronic credit ledger was nil.

My client has taken excess ITC of ₹.180218 for the month of September 2017 but closing balance for the same month  of electronic credit ledger was ₹.79624 , can i take a stand that excess ITC taken & utilized is ₹.100594 (₹.180218- ₹.79624) and interest is to be charged on ₹.100594 only.

Officer has calculated interest on ₹.180218.

Replies (1)
No, I don't think so because to me it seems like you have not paid the amount of input credit taken unless it was fully utilised. When you say that between the months closing balance of credit ledger was nil it clearly means that you have utilised the wrongly availed ITC. You have to calculate interest on Rs 1,80,218.

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