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ITC CLAIMED IN WRONG HEADS

Others 866 views 6 replies
sir in fy 17-18 itc claimed in cgst and sgst instead of igst and department was raised a demand in cgst & sgst please guide me what can I do.?
Replies (6)
You need to reverse itc of CGST & SGST with 28% int p.a.
@ Mukul Rizag Associate

In which section of the GST Act ,it is written 28 % interest rate for reversal of ITC ?. Sir please Clarify.

Interest is only applicable if wrongly availed ITC has been utilized also as per Rule 88B. 

He availed wrong itc cgst and sgst instead of igst in f.y 2017-18, he has to pay!
Input tax credit on wrong heads

You have to reverse of CGST and SGST amount equivalent to utilized (CGST and SGST) and pay interest of 24% from the date on which your ICGST & SGST balance in credit ledger came down to utilized amount of (CGST and SGST).

 

Unfortunately, You are not eligible to avail that IGST ITC for the F.Y. 2017-18 because time barred as per subsection 4 of section 16 CGST Act

For more clarity please read rule sub section (3) of Rule 88B of CGST Rule, 2017


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