Find
No. Under Sec 50(3) and Rule 88B(3), interest is payable only on ITC wrongly availed and utilised. If your credit balance never fell below the wrong amount, it was not utilised.
GST
Wrong ITC claimed but not used: is interest due
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Provisions
Sec 50(3), CGST Act 2017; Rule 88B, CGST Rules 2017
Analysis
Reverse the wrong ₹40,000 credit in the next GSTR-3B. Show the ledger balances from claim date to reversal date to prove no utilisation. Many notices compute interest on the whole period without checking this. Keep ledger extracts in your file.
Close
- Find the date the wrong ITC was claimed.
- Check the credit ledger balance every day till reversal.
- If never below the wrong amount, no interest arises.
- Reverse the ITC and keep ledger extracts.
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