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Wrong availment of ITC

Tushar Gajpalla (Student CA IPC / IPCC) (7 Points)

08 June 2018

I had wrongfully taken input credit in the month of february though i do not have any credit at that time. when should i adjust the same.? Is there is any consequences for the non payment of the same before filing of IT return.?

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8 Replies

Nihar Ranjan Rout (CA Final & CS Final) (577 Points)
Replied 08 June 2018

Add the amount of tax wrongfully availed to output liability in upcoming return and pay interest by cash @ 24%p.a.

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Anmol Singla (808 Points)
Replied 08 June 2018

you need to pay interest only if you utilize that wrongly ITC taken

felix thomas (student) (159 Points)
Replied 08 June 2018

During the month of February if you have utilised such wrong itc then pay interest to the extent of amount of wrong input tax utilised at 24% p.a and reverse itc wrongly availed either by adding to taxable outward supply if utilised or by disclosing under ineligible credit ..

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CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 08 June 2018

U have to pay interest even if you claim wrong ITC as per section 50(3) @ Anmol Singla.

umamaheshwaran (articled clerk) (52 Points)
Replied 22 October 2018

will anyone let me know how you are saying it is 24 % ( i think 18 % is correct )

Anyone plesae provide how 24 % applicable with relevant sections ??

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CA Vinay Sahani (CHARTERED ACCOUNTANT) (2 Points)
Replied 06 June 2019

Sec 50

(a)18% for Late payment of GST

(b)24% for wrong undue/excess claim of ITC or reduction of Output Liability

umamaheshwaran (articled clerk) (52 Points)
Replied 15 June 2019

yes.. thanks for your reply.

i think it applicable from next 20th of the subsequent .

ABHIJIT MANNA (ACCOUNTANT) (447 Points)
Replied 15 June 2019

I had also wrongfully taken input credit in the month of October'18 instead of March'19 though i do not have any credit at that time. For Example My input was Rs.500 in the month of March, but I had already taken the same amount in the month of October'18. My March'19 return is stiil pending. So what to do now?