07 January 2020
We are a steel manufacturing company, and have shown by mistake amount of cess on purchase of coal in GSTR 3B during F.Y. 17-18 and 18-19. Therefore the whole amount of Cess is showing under available balance in our ITC ledger. Now we want to reverse the same in GSTR-3B of current month, since availed by mistake. Now whether we have to pay the interest liability also @24% p.a. on this amount by creating liability in DRC-03 or we can reverse this in GSTR3B without paying any interest?
07 January 2020
Also, we have not availed the credit of cess in financial books. In financial books the same has been expensed off. We have just shown the cess amount in GSTR3B with other amounts of availed input tax credit related to CGST, SGST and IGST.
07 January 2020
As per Sec 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, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four percent., as may be notified by the Government on the recommendations of the Council. Since our case not falling under 42(10) and 43(10), therefore not required to pay interest.
CAclubindia
