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Interest on wrong / excess ITC

Kaustubh Ram Karandikar (Corporate Consultant- Central Excise & Service Tax) (519 Points)

23 April 2021

If ITC is wrongly claimed excess or claimed though not eligible. 1) Under which Section it is mentioned that Interest is not required to be paid if sufficient balance is maintained to cover the excess credit 2) This provision is valid from which date?

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4 Replies

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 23 April 2021

The provision does not apply on excess itc claimed.
interest will be @ 24% on the whole excess amount claimed

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Rupesh Kumar (72 Points)
Replied 24 April 2021

No interest will be chargeable as per Section 100 of Finance Act 2019 read with notification and clarifications issued by CBIC, in this respect time to time.

Pramod Limaye (Chartered Accountant) (172 Points)
Replied 25 April 2021

Interest is payable @ 24% in case of excess ITC claimed.

APURBA CHATTERJEE (QUALIFIED CHARTERED ACCOUNTANT) (604 Points)
Replied 26 April 2021

Kindly note that 24% interest is as per section 50(3) of the CGST act, 2017, and this section will be applicable on the basis of matching concept available in GSTR 2 and GSTR 3. so as GSTR 2 and GSTR 3 is not operational till date, then 24% is not applicable here.