Answer

1. F

   Facts

   GSTR-3B cannot be revised, so wrongly claimed ITC is reversed in a later GSTR-3B, Table 4(B). If the wrong credit was used to pay tax, interest under Sec 50(3) at 18 percent is payable from the date of use.

2. P

   Provisions and law

   • Sec 50(3), CGST Act 2017Interest on ITC wrongly availed and utilised
   • Rule 88B, CGST Rules 2017How interest is computed on late cash payment and on wrongly utilised ITC
   • Sec 17(5), CGST Act 2017List of blocked credits such as motor vehicles, food, club fees and personal use
3. A

   Analysis

   Suppose you claimed ₹60,000 credit on a car purchase, which is blocked under Sec 17(5). Reverse ₹60,000 in the next GSTR-3B. If your credit ledger balance fell below ₹60,000 at any point after the claim, the credit was utilised and interest is due on the utilised amount for that period. If the balance always stayed above ₹60,000, no interest arises.

4. C

   Conclusion

   1. 1Identify the wrong credit and the month it was claimed
   2. 2Check daily credit ledger balances to see if it was utilised
   3. 3Reverse it in Table 4(B) of the next GSTR-3B
   4. 4Pay interest on any utilised part in cash
   5. 5Record the working for a possible notice

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.