Interest on Excess Credit

Hlo, In case of excess claim it will be 24%

In case we have invoice but party fails to file gstr1, then what is the rate?

It will be 18%

Thank you

In case we have invoice but party fails to file gstr1, then what is the rate?

- It's also 24% as excess claim.

In case we have bill, interest will be 18% only. Because we are eligible to claim.. Only because of fault by the party, it become ineligle..

Can You give details for Your view...? @ Mr David...

As per section 50(3) read with section 42(10)  cgst act, when recipient has made an excess or undue claim of ITC , rate of interest applicable will be 24%

You donot need to pay interest on itc claimed because you have proof to claim itc. It is mistake of party to not filing Return. if any query will be raised on you, you can justify your genuineness on basis of that invoice.

What if we utilise the excess credit taken?

The interest rate is 24% (refer Section 50 of CGST Act)

Hlo Sir,
In my opinion, Excess credit only arise when we claim ITC more than from which is shown in invoice. If a there is ITC of Rs. 100 in a invoice ,if we claim 150, then there arise excess claim... So 24% will applicable.... Here In this case Invoice amount and claimed amount are same. Only because of the supplier default in payment, it become ineligle... So 18% only applicable.
Any discrepancy arises either due to supplier fails to provide details of such supply in his return will be communicated to both supplier and recipient and If the discrepancy is not rectified, the ITC needs to be reversed along with interest @ 18% as per section 50(1).

If the supplier declares details of such supply in his return filed within the prescribed time limit, the recipient can reduce the amount so added in his output tax liability and the interest paid also shall be refunded.

Further, According to provision of sec 42 (10) of CGST Act,in case, the unmatched credit is availed back by the recipient,he shall be liable to pay interest @ 24% on such amount of unmatched credit. The chargeability of rate of interest has been provided in sec 50(3) of the CGST Act..