Interest may levy or not

If you've claimed input tax credit (ITC) in error and are now reversing it due to a violation notice, you may not have to pay interest. This is especially true if the input was not utilised in any subsequent financial years and your credit ledger remains sufficient. Guidance suggests that if the ITC hasn't been used and your balance doesn't fall below the wrongly claimed amount, interest under Section 50(3) read with Rule 88B might be avoidable.