one of my client approached GST for no due certificate...
Tran 1 itc taken 4,60,000/- Since they are not manufacturing unit... Who offer only service and labour bills..itc b/f in tran 1... Till now not utilised... Now reversed the same from our itc as per officer advice... Now again they are asking to pay interest for the same...
Pls clarify...
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Tran 1 credit issue
Replies (2)
Yes the interest applicable .
1. As per Section 50 of CGST Act , interest is applicable if person CLAIM of input tax credit. here its not written " UTILISED" , so even though it is not utilised , the Applicability of interest is attracted.
2. In term of Circular 58/32/2018 GST , clearly prescribed that any wrongly claim ITC in tran 1 , need to be Reverse with Interest & penalty.
1. As per Section 50 of CGST Act , interest is applicable if person CLAIM of input tax credit. here its not written " UTILISED" , so even though it is not utilised , the Applicability of interest is attracted.
2. In term of Circular 58/32/2018 GST , clearly prescribed that any wrongly claim ITC in tran 1 , need to be Reverse with Interest & penalty.
Noted with many thanks....
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