Menu
Rate of interest
Whats is rate of interest on excess claim of ITC 24%p.a or 24%
Replies (6)
24% per annum
Refer sub section (3) of Section 50 of the CGST Act 2017.
The Provision of the Law is reproduced below :
"A taxable person who makes an undue or excess claim of input tax credit under sub-section [10] of Section 42, or undue or excess reduction in output tax liability under sub-section [10] of Section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding TWENTY FOUR PER CENT, as may be notified by the Government on the recommendations of the Council."
Hence it is 24%.
The Provision of the Law is reproduced below :
"A taxable person who makes an undue or excess claim of input tax credit under sub-section [10] of Section 42, or undue or excess reduction in output tax liability under sub-section [10] of Section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding TWENTY FOUR PER CENT, as may be notified by the Government on the recommendations of the Council."
Hence it is 24%.
But in notification 13/2017 central tax p.a is mentioned
which is indicating 24% per annum. 2% per month.
2% per month is correct
When recipient has made an excess or undue claimof ITC as per section 42(10) of the Act, rate ofinterest applicable will be 24%.
Recent Topics :
- How Do CA Firms Manage Client Document Collection
- How do CA firms manage pending client documents du
- How to find a good CA
- Rcm on rent paid
- Clarify on GST Application
- Residential status for overseas students visitin
- Capital Gains Tax
- LTCG 112A and business loss
- FAST-DS 2026 applicability: foreign employee share
- NRI Property Sale in India: TDS Rates and Key Comp
Related Topics :
CAclubindia
