WRONG GST CREDIT

This discussion addresses the procedure for reversing incorrect GST input tax credit (ITC) claimed between FY 2017-18 and 2019-20, where the supplier's GST number was later found to be cancelled. It clarifies that interest will be levied at 18% per annum under Section 50(1) for standard reversals. However, if credit was previously reversed and then reclaimed, a higher interest rate of 24% per annum under Section 50(3) may apply. The thread also touches upon the necessity of reversing utilised ITC and provides an example calculation for interest.