one of my client approached GST for no due certificate...
Tran 1 itc taken 4,60,000/- Since they are not manufacturing unit... Who offer only service and labour bills..itc b/f in tran 1... Till now not utilised... Now reversed the same from our itc as per officer advice... Now again they are asking to pay interest for the same...
Pls clarify...
Yes the interest applicable .
1. As per Section 50 of CGST Act , interest is applicable if person CLAIM of input tax credit. here its not written " UTILISED" , so even though it is not utilised , the Applicability of interest is attracted.
2. In term of Circular 58/32/2018 GST , clearly prescribed that any wrongly claim ITC in tran 1 , need to be Reverse with Interest & penalty.
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