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Interest on Excess ITC claimed.

Others 239 views 1 replies

Vyankatesh Pampatwar

Article

20 Points Joined January 2010

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)

CA Mohammad Kashif

Practice

280 Points Joined October 2019

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.