Paras Thakkar 25 February 2021
I have a doubt can you please suggest me an appropriate answer...
Suppose I file gstr-3b for the month of Jan 2021 and take excess ITC of Rs.50,000/- due to mistake or duplication.
But I later realise that I have taken such ITC wrongly so I decide to reverse the same by adding to output tax liability in the month of Feb 2021.
Say for eg in the month of Jan 2021 even If I had not taken this extra 50,000/- there would not have been any tax payable in cash in jan 2021 as I had sufficient ITC in Jan 2021
So do I have to Pay interest on this reversal. Keeping in view of the New Proviso to Section 50 (interest on net tax liability)