Interest and penalty for non reverse of ITC.(fy 19-20)
Sanjib (STUDENT) (66 Points)
06 September 2022
Interest and penalty applicable for non reverse of ITC (fy 19-20). Please suggest me.
5 Replies
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 06 September 2022
Yes.
as per Section 50(3) r/w rule 88B , interest is applicable @ 24%.
if deposited within 30 day from date of issue of SCN the penalty is not leviable.
Note : Generally Penalty is imposed when notice is issued u/s 74 .
for detail plz do refer Section 73,74 of CGST Act
as per Section 50(3) r/w rule 88B , interest is applicable @ 24%.
if deposited within 30 day from date of issue of SCN the penalty is not leviable.
Note : Generally Penalty is imposed when notice is issued u/s 74 .
for detail plz do refer Section 73,74 of CGST Act
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 09 September 2022
If ITC utilised then reversal with interest @ 18%.
If ITC not utilised then reverse without interest
If ITC not utilised then reverse without interest
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 09 September 2022
@ CA ALTAMUSH ZAFAR
IF UTILISED THEN REVERSAL WITH INTEREST IS @ 24%
FINANCE ACT 2022-23 CLAUSE 111 GOT EFFECTIVE, AMENDING SECTION 50 OF CGST ACT & THE RATE OF INTEREST FOR ITC AVAILED & UTILISED IS 24% THEREIN (NOTI 9/22 CT)
AND CLAUSE 115,118,121 WHICH IS AMENDING NOTIFICATION 13/2017 CT WHICH IS AMENDING INTEREST RATE TO 18% IS YET TO BE NOTIFY , SINCE THESE CLAUSE OF FINANCE ACT 2022-23 NOT BEING NOTIFIED TILL DATE ,THE INTEREST RATE APPLICABLE 24%
(REFER SECTION 50(3) AS NOTIFIED)
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 09 September 2022
SORRY
YES ITS 18% .
AS PER FINANCE ACT 2022-23 CLAUSE UPTO 113 NEED TO BE NOTIFY BY NOTIFICATION & REST WILL EFFECTIVE FROM 01/04/2022
SO CLAUSE 115 OF FINANCE ACT ALREADY BEING EFFECTIVE FROM 01/04/2022
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 09 September 2022
Correct, that clause doesn't need a notification notifying it. The powers to amend directly were taken in the Finance Act itself. Quite a novel way to do it as far as GST is concerned.
That is why most people quote the incorrect rate due to the manner of amendment.
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