Answer

1. F

   Facts

   Circular 192/04/2023-GST says the combined balance of IGST, CGST and SGST credit is seen for deciding utilisation of wrongly availed IGST credit. Similar logic is applied in practice for other heads.

2. P

   Provisions and law

   • Circular 192/04/2023-GSTClarifies how interest under Sec 50(3) applies to IGST credit wrongly availed, based on whether the combined credit balance fell below the amount.
   • Sec 50(3), CGST Act 2017Interest is payable on ITC wrongly availed and utilised, from the date of utilisation till reversal, at the notified rate (18 percent a year).
   • Rule 88B, CGST Rules 2017Interest on a late return is on the cash portion only; amounts already in the cash ledger by the due date are excluded; interest on wrongly availed ITC runs from utilisation till reversal.
3. A

   Analysis

   The circular deals specifically with IGST credit. If your total credit balance across heads stayed above the wrong amount, it can be argued there was no utilisation. Keep head-wise and total balances for each day. Take advice where amounts are large.

4. C

   Conclusion

   1. 1Get daily credit ledger balances head-wise.
   2. 2Compare total balance with the wrong amount.
   3. 3Apply Circular 192 reasoning.
   4. 4Compute interest only for utilised periods.

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