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Reversal of Blocked ITC availed and utilize

Abhijit Khan (39 Points)

29 March 2022

how do i reverse and is there any interest...?
if any interest come then in which %...?

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prasad Nilugal ( GST Practitioner & Accounts ) (14811 Points)
Replied 29 March 2022

If you wrongly availed and utilise blocked input tax credit , then you have reverse the same in , Table 4( B)(2) of the GSTR3B . Interest applicable @ 24% as per section 50(3) of the CGST act .

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Abhijit Khan (39 Points)
Replied 29 March 2022

Thank You sir....

prasad Nilugal ( GST Practitioner & Accounts ) (14811 Points)
Replied 29 March 2022

I think interest is @ 18% , So please confirm . Interest is 18% or 24% with CBIC help desk or with others .

CA Altamush Zafar (GST Consultant) (15976 Points)
Replied 29 March 2022

If ITC is claimed the same has to be reversed. Reversal can be done through GSTR-3B or DRC-03. If ITC has not been used then there is no interest. If ITC was utilised then interest @ 18% is chargeable.