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.
shyam kumar (Manager - Accounts & Finance) (5 Points)
22 May 2020Dear 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.
Rajkumar Patel
(602 Points)
Replied 22 May 2020
Pankaj Rawat
(GST Practitioner)
(55047 Points)
Replied 23 May 2020
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.
shyam kumar
(Manager - Accounts & Finance)
(5 Points)
Replied 26 May 2020
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