INTERST OF ITC REVERSAL

Interest must not be applicable if not used. Although the wordings of the GST law presently is unclear, and the amendment to Section 50 (yet to be notified), it specifically in relation to GST on delayed filing of returns. Although, the concept from the same could be utilised and challenged in court. 

Hi Nayab,

When goods were re-exported, was it sent through Tax invoice under the cover of LUT. If yes, there may not be any requirement to reverse ITC. 

Credit in relation to BoE need not satisfy payment to vendor, just the payment made to customs is sufficient for claim, therefore in my view interest issue does not arise.