Quick Summary
On the occasion of 6 years of GST, the CBIC clarifies that taxpayers are liable to pay interest only if they utilized the wrongly availed ITCfor the payment of GST liability. They announce a retrospective relief measure for taxpayers in this regard. This is a welcome relief for taxpayers who have been facing interest liabilities on wrongly availed ITC. The reduction in the interest rate will help to reduce the financial burden on taxpayers. Furthermore, the CBIC informs about the reduction
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FAQ :
The CBIC has announced a reduction in the interest rate for late tax payments and wrongly availed Input Tax Credit (ITC).
The interest rate has been reduced from 24% to 18%.
The reduction is effective retrospectively from July 1, 2017.
No, taxpayers are only liable for interest if they have utilised the wrongly availed ITC for the payment of their GST liability.
This announcement provides retrospective relief and reduces the financial burden on taxpayers by lowering the interest rate and clarifying liability based on utilisation.
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