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Interest on reversal of ITC

ITC / Input 381 views 3 replies

Hi

By mistake we availed ITC under CGST and SGST instead of availing under IGST. Do we need to pay interest on rectification of the same in the subsequent month?

Thanks 

Sajith B

Replies (3)
No need... Interest not applicable for this mistake (and rectification).
No................... (Refer Section 77 of CGST Act)
Interest to be paid @ 24% p. a. Sec 77 of CGST Act specifically talks about 'tax wrongfully collected paid to Government'. The emphasis is on the output tax and not on ITC.


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