Rate of interest
Gaurav Sharma (155 Points)
28 August 2019
Whats is rate of interest on excess claim of ITC 24%p.a or 24%
6 Replies
Shivam RC
(Student)
(23683 Points)
Replied 29 August 2019
Refer sub section (3) of Section 50 of the CGST Act 2017.
The Provision of the Law is reproduced below :
"A taxable person who makes an undue or excess claim of input tax credit under sub-section [10] of Section 42, or undue or excess reduction in output tax liability under sub-section [10] of Section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding TWENTY FOUR PER CENT, as may be notified by the Government on the recommendations of the Council."
Hence it is 24%.
The Provision of the Law is reproduced below :
"A taxable person who makes an undue or excess claim of input tax credit under sub-section [10] of Section 42, or undue or excess reduction in output tax liability under sub-section [10] of Section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding TWENTY FOUR PER CENT, as may be notified by the Government on the recommendations of the Council."
Hence it is 24%.
Gaurav Sharma
(155 Points)
Replied 29 August 2019
But in notification 13/2017 central tax p.a is mentioned
Uttam
(employee)
(814 Points)
Replied 02 September 2019
which is indicating 24% per annum. 2% per month.
Priya Kashyap
(Student)
(7053 Points)
Replied 03 September 2019
When recipient has made an excess or undue claimof ITC as per section 42(10) of the Act, rate ofinterest applicable will be 24%.
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