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Excess itc claimed then intrest applicable even if credit balance

ashish dharkar (accountant) (141 Points)

30 November 2024

Excess itc claim but credit balance available then intrest applicable?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178317 Points)
Replied 30 November 2024

If a business has a credit balance in its electronic credit ledger but has availed excess ITC, the key factor is whether that excess ITC was utilized against any output tax liability. If not utilized, then under Section 50(3) of the CGST Act (as amended), no interest will be charged on the unutilized excess ITC.