Tran 1 credit issue

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.

Noted with many thanks....