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Reversal of excess ITC claimed in subsequent return

shyam kumar (Manager - Accounts & Finance) (5 Points)

22 May 2020

Dear Members,

My company has wrongfully taken excess ITC of Rs. 2.68L in the December 2019 GSTR 3B but the same has been reversed in April 2020. I just want to know whether any interest is payable on such reversals?

Kindly answer its urgent.

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4 Replies

Rajkumar Patel (602 Points)
Replied 22 May 2020

Yes. 100 and 10% you has to pay Interest u/s 50 on excess claim ITC @ 24% p.a.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 23 May 2020

Yes as per Section 50 of CGST Interest @ 24% pa is applicable

CA Arun Kumar Tiwari (CA in Practise) (445 Points)
Replied 26 May 2020

Yes, you will have to pay Interest under section 50 ,wherein it requires to pay interest @ 24% as you did not do the same process in the month of January .So you will have to pay interest irrespective of the fact that you have reversed the excess ITC in the month of April.