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Regarding penalty for claimimg excess itc.

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Aarchi Jamuar

20 Points Posted on 09 May 2021

Is there any harsh penalty apart from fine like cancelation of my registration if I have claimed excess of ITC in case when I have supplied goods but the vendor has not uploaded the invoice of those goods and time period has been lapsed.

Replies (10)

Quick Summary

This discussion addresses the penalties for claiming excess Input Tax Credit (ITC) when a supplier hasn't uploaded invoices. While a fine and 24% interest from the date of availment to reversal are applicable, registration cancellation is unlikely without a hearing opportunity. The department may pursue recovery from the supplier first.

CA. Sourav Sarkar

Chartered Accountant

20 Points Posted on 09 May 2021

In case of excess ITC you have taken then you should reverse such ITC.

Otherwise Availing Input Tax Credit based on wrong Invoice Rs. 10,000 or 100% of ITC wrongly availed, whichever is higher + 24% Interest from date of availment to date of reversal Input Tax Credit (ITC) is backbone of GST structure.

Lotus Agrawal

Practice

20 Points Posted on 09 May 2021

In this case you have to reverse your itc along with interest.

CA. Sourav Sarkar

Chartered Accountant

20 Points Posted on 09 May 2021

Agreed

Aarchi Jamuar

20 Points Posted on 09 May 2021

Thank you sir, but is there any chances that my registration can be canceled for this?

CMA Poornima Madhava

CMA

20 Points Posted on 09 May 2021

No. I don't think the registration can be cancelled without giving you an opportunity of being heard (according to the principles of natural justice).

Further, after initiating recovery proceedings against the supplier, the department can recover tax from you, in case the supplier does not pay tax to the govt