Wrongly itc availed not utilised ( days for int. calculation)

Days to be calculated from day you availed ITC till you reversed or the day you setoff interest paid

ITC wrongly availed but not utilised do not attract interest liability..

 

 

 

 

 

 

 

 

 

@ CA HARITHA

ONCE YOU HAVE CLAIMED ITC IN 3B, ITS BEING TRANSFERRED TO CREDIT LEDGER OF TAXPAYER, NOW WHETHER ITS BEING UTILISED OR NOT DOES NOT MATTER, HAVE TO DEPOSIT INTEREST FOR THE SAME.

AS PER SECTION 73 OF CGST ACT

Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful misstatement or suppression of facts.

ITS OR BEFORE INPUT TAX CREDIT WRONGLY AVAILED , MEANS WHETHER YOU HAVE AVAILED OR UTILSED IN BOTH THE CONDITION INTEREST IS APPLICABALE (REFER SECTION 50 OF CGST ACT)

Sir,

 

Section 73 is recovery section - that is wrongly availed ITC can be recovered by the department. Sec 73 do not mention of interest on wrong availment. The only section that levies interest is section 50.

50(1) Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax

50(3) A taxable person who makes an undue or excess claim of input tax credit under sub-section (10) of section 42 or undue or excess reduction in output tax liability under sub-section (10) of section 43

Section 50(3) speaks of wrong availment of ITC u/s 42(10) that deals with matching of ITC which is not in existence as on today as there is no GSTR 2/3.

Hence, wrong availment without utilisation do not attract interest as per sec 50.. 

 

,

 

You are correct ....

But as you have mention the section 42,43 Of cgst act as no matching system exist so the same is not applicable , Now lets talk about How can you take credit when the eligibility avail ITC mention in section 16 of CGST Act cannot fulfilled as per current return filing scenario.

Even department is issuing Notice under Section 73 (DRC 01) when claim ITC in 3b is more then the captured in GSTR 2A , ..... now let me know where its mention in act that on the basis of 2A , taxpayer get the SCN u/s 73 ,, it means that dept. think that ITC claim by Taxpayer is wrong .

If we Talks about the section , Act in today scenarios , nothing is applicable .

I have stated my reply on the basis what today we are facing ,

So deposit the Wrong claimed ITC , yes for interest you can avoid that till you get any notice.