Interest on ITC reversal on or before 30/11/2023

Supplier has failed to file his 3B. Recipient reversed such utilized ITC through cash ledger on 30/11. whether interest is payable on the same. please give reference of the relevant provision or notification also.
Replies (2)
Quick Summary
This discussion clarifies whether interest is payable when Input Tax Credit (ITC) is reversed via the cash ledger on or before 30th November following the financial year, due to a supplier's failure to file their GSTR-3B. Based on Rule 37A of the CGST Rules, if ITC is reversed by the specified due date, no interest is applicable. Interest is only charged if the reversal is delayed and the excess ITC is utilised.

According to the information I found, if the supplier has failed to file his GSTR-3B for the tax period corresponding to the invoice or debit note, the recipient has to reverse the ITC claimed on such invoice or debit note by November 30th of the next financial year, as per Rule 37A of CGST Rules12. However, if the recipient has reversed the ITC by the due date and paid the amount through the cash ledger, then no interest is payable on the same13. The interest is only applicable if the recipient fails to reverse the ITC by the due date and utilises the excess ITC12. The interest is charged as per Section 50 of the CGST Act, at 24% per annum for excess ITC claimed and utilised from the date of such utilisation until the date of payment12

No interest is payable as ITC has been reversed till 30th nov in accordance with Rule 37A read with section 41. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details