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Itc wrongly availed but not utilised

ITC / Input 950 views 3 replies

Dhruv Jain

Practicioner

208 Points Posted on 12 April 2019

I have availed ITC under the Service tax regime, and now during the Tran 1 Verification few bills were missing due to which the credit needs to be reversed. however since inception of GST the credit transferred to GST has never been utilised till date.

The Officer has asked to pay the Differencial amount of credit along with interest, which I feel should not be the case as the same credit has never been utilised.

Reversal of credit can be done but to pay is highly illogical.

kindly grace me with some advice. any particular sections will be highly appreciated.

Replies (3)

jayendra Gaonkar

Asst. Manager

216 Points Posted on 12 April 2019

Hello, As per my opinion, you are liable to reverse the excess ITC availed with 24% interest as per CGST ACT sub-section (3) of section 50. There is no concept of utilized or not utilized.

I hope that helps.

Dhruv Jain

Practicioner

208 Points Posted on 12 April 2019

But sir if you read sec 50(3) then it is as per the terms of sec 42 (10) and sec 43(10) which states about utilisation

Aaqib Musthafa

2 Points Posted on 13 April 2019

yup, i too have same problem sir, in trans 1 mistakenly i put my closing stock value in cgst, RS.4.3L, it showing in ITC, but from that date to till date i not utilized any itc from that 4.3L,