Interestand penalty

If wrongly availed ITC is not utilized, no interest is payable.

Depending upon facts & circumstances Interest & Penalty levied. As there is no specific provisions, which specifies the Interest & penalty are exempted. Generally Wrongly availment of ITC, Interest is not applicable, However if the same is utilised then Interest shall be required to pay u/s 50 of CGST Act 2017. Penalty may also be waived or reduced by the proper officer depending upon the violation of law.