SCN for Excess claim of ITC.

Others 794 views 9 replies
SCN issued for excess ITC claimed along with interest payable. As per our books also excess ITC has been claimed in 3B. Have utilized also.

what would be reply for

Excess ITC : I need to reverse the same or need to pay in cash.

Interest: Rate of interest would be???
Replies (9)

If credit is available in ECL then reverse the same vide DRC 03, otherwise pay in cash.

As ITC is utilized so interest u/s 50(3) need to be paid.

Pay it through DRC -03 with 18% interest
Yea as per latest Rule 88B inserted by Notification 14/2022 ITC wrongly availed & utilized need to be pay with interest .
In my view the interest rate must be 24%
As the Finace Act 2022-23 Clause 111 being got effective retrospective from 01/07/22 , by Notification 9/22 CT
Clause 111 a new sub section (3) being inserted u/s 50 of CGST act & the rate of interest for ITC availed & uitilised is 24% .
As the interest rate in this case amended to 18% by amending notification 13/2017 CT under clause 115, 118, 121 , but these clauses are not being notified till date.

So need to pay 24% interest.
Interest in cash and itc reversal from credit ledger am I right??

Yes I agree with Pankaj ji interest rate will be 24% so you may reverse the ITC through credit ledger and pay interest in cash and file DRC-03.

Yes 24% interest chargeable on excess ITC claim.
Thanks

Pay through DRC-03 through cash. Interest rate is 18%

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