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Interest rate for reverse itc

Manoj (Student) (267 Points)

03 October 2018

In July 17 month, I have claimed ITC as per invoice recevied. Now, in reco i have found that vendor is not uploading 1 invoice for the month july 17. Vendor is denied to upload the invoice. I have to reverse the ITC with interest. What is the interest rate ?

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6 Replies

Siddharth Agarwal (17 Points)
Replied 03 October 2018

If u have claim wrong itc then u have to reverse ITC and pay interest 24

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Manoj (Student) (267 Points)
Replied 03 October 2018

No, I have taken ITC as per Invoice received but vendor is not uploaded in portal.
Acutally, Vendor have taken GST registration on 15 Aug 2017 but issue invoice 1 Aug 2017. They said we can not upload invoice in GSTR 1 of July 2017.
But We have received GST invoice of July 2017 that base we have taken.

Siddharth Agarwal (17 Points)
Replied 03 October 2018

It's a fault by supplier it can be solved through mutual understanding otherwise supplier will be penalised u/s 420 IPC becoz he is receiving govt fund by fraud.

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RAJA P M ("Do the Right Thing...!!!") (127912 Points)
Replied 03 October 2018

@ Manoj.,

No need to worry about the mistake and No need to Pay any Interest...

H.R. Sreepada Bhagi (Practicing Cost Accountant) (50 Points)
Replied 04 October 2018

If the said invoice on which you have availed ITC of GST is not uplaoded by the supplier, you will have to pay interest @ 24% p.a. on the amount of ITC from teh month in which it is availed up to the date of reversal of ITC / remittance by cash. In case the supplies is refusing to upload the said invoice, you can withhold payment to him and adjust the same towards additional liability on A/c of his default.