Is interest payable in ITC mismatch

This discussion clarifies whether interest is payable when a business corrects an Input Tax Credit (ITC) mismatch by debiting their credit ledger. The consensus is that interest is generally not applicable if the excess ITC is paid back using the credit ledger, as no cash payment was delayed. However, interest might be due on the 'net liability' if the correction involves a cash payment or if returns were filed late.