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Interest on Excess ITC not charged in Portal

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Kishore Nuthalapati

Accountant for multiple small entities

154 Points Posted on 20 March 2023

Hi Experts

We have taken Excess ITC in June 2022 for 1,00,000 however we have reversed the said amount in January 2023 while filing GSTR 3B

Now I am filing GSTR 3B for February 2023

I have expected that the interest on Excess itc will be auto calculated and added in the portal

However there is no such interest

Could some one please advise can I go without paying interest as given in the portal

Thanks in advance

Replies (2)

Quick Summary

A user is seeking clarification on why interest for excess Input Tax Credit (ITC) taken in June 2022 and reversed in January 2023 is not being auto-calculated on the GST portal for their February 2023 GSTR 3B filing. Experts advise that the portal does not automatically calculate this interest. It is recommended to voluntarily deposit the interest using Form DRC-03 or manually edit the GSTR 3B to include and pay the interest along with the tax.