In case we claim extra ITC in july 2017 and forget to reversal till date...???
How to we avoid interest applicability on it...???
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Reversal of ITC
Replies (4)
Interest cannot be avoided. If you have utilized the credit, interest at the rate not exceeding 24% p.a will be applicable
Even if have not utilised but just availed credits interest @ 24% pa applicable
If the amount is huge the same can be disputed, positive case law in earlier period" CCE & C Vs Precot Meridian Ltd 2015 (325) E.L.T. 234 (S.C.) in this decision also it is held that reversal of Cenvat/Modvat credit amounts to non-taking of credit."
+GST Council in its 31st meeting held " Amendment of section 50 of the CGST Act to provide that interest should be charged only on the net tax liability of the taxpayer, after taking into account the admissible input tax credit, i.e., interest would be leviable only on the amount payable through the electronic cash ledger”, this is still on papers till now..
This case law is presently not applicable in gst and as far as the council decision is concerned it has no effect till the Act is amended.
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