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)
Quick Summary
This discussion addresses a Show Cause Notice (SCN) for claiming excess Input Tax Credit (ITC) and the associated interest. It clarifies that excess ITC must be reversed, either by paying in cash or utilising available credit, and interest is payable under Section 50(3) of the CGST Act. There's a debate on the applicable interest rate, with differing views on whether it's 18% or 24% based on recent notifications and amendments.
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.