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REGARDING ITC CLAIM 16(4)

24 November 2023

I have filled my Gstr-3B for the month of March 2019 by Feb 2020 i.e. late by 11 months claiming ITC amount to Rs. 38662 is this ITC is wrongly claimed by me.

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Money Money (413 Points)
Replied 27 November 2023

According to the CBIC notification, the reclaimable ITC earlier reversed in Table 4 (B)2 may be subsequently claimed in Table 4 (A)5 on fulfilment of necessary conditions1. However, if you have already utilised the ITC against your output tax liability, then you may not be liable to pay interest on such undue or excess claim2. You can also reverse the ITC that is wrongly claimed in the subsequent period and no need to pay interest on merely showing the same in the return as long as such ITC is not utilised2.

However, if you have not utilised the ITC against your output tax liability, then you may have to pay interest on such undue or excess claim as per section 50 (3) of CGST Act2. The rate of interest is not exceeding twenty-four per cent., as may be notified by the Government on the recommendations of the Council2.

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