Kallol Sarkar (Accountant) (188 Points)
15 November 2019In GST 28th council meeting dtd. 21.07.18, it was proposed that " In case the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice, the input tax credit availed by the recipient will be reversed. Liability to pay interest is being done away with in that case."
My question is as of now whether interest to be paid in above case or not? Because there is no amendment of CGST act or further notification regarding waiver of interest
Anshika Aggarwal
(Chartered Accountant)
(186 Points)
Replied 15 November 2019
Yes, interest is to be paid when reversing the ITC credit.
As per section 16(2) of CGST Act, 2017 where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 15 November 2019
Kallol Sarkar
(Accountant)
(188 Points)
Replied 16 November 2019
That means recommendation of GST council for interest waiver has not been honored.
Anyway, What will be interest rate 18% or 24%?
CA Pranav Mishra
(241 Points)
Replied 17 November 2019
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