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Wrong availment of ITC

ITC / Input 3154 views 8 replies

Tushar Gajpalla

Student CA IPC / IPCC

7 Points Joined August 2015

I had wrongfully taken input credit in the month of february though i do not have any credit at that time. when should i adjust the same.? Is there is any consequences for the non payment of the same before filing of IT return.?

Replies (8)

Nihar Ranjan Rout

CA Final & CS Final

577 Points Joined August 2012

Add the amount of tax wrongfully availed to output liability in upcoming return and pay interest by cash @ 24%p.a.

Anmol Singla

808 Points Joined October 2015

you need to pay interest only if you utilize that wrongly ITC taken

felix thomas

student

159 Points Joined June 2009

During the month of February if you have utilised such wrong itc then pay interest to the extent of amount of wrong input tax utilised at 24% p.a and reverse itc wrongly availed either by adding to taxable outward supply if utilised or by disclosing under ineligible credit ..

CA Shivam Arora

Chartered Accountant

2414 Points Joined November 2016

U have to pay interest even if you claim wrong ITC as per section 50(3) @ Anmol Singla.

umamaheshwaran

articled clerk

52 Points Joined September 2010

will anyone let me know how you are saying it is 24 % ( i think 18 % is correct )

Anyone plesae provide how 24 % applicable with relevant sections ??

CA Vinay Sahani

CHARTERED ACCOUNTANT

2 Points Joined June 2016

Sec 50

(a)18% for Late payment of GST

(b)24% for wrong undue/excess claim of ITC or reduction of Output Liability

umamaheshwaran

articled clerk

52 Points Joined September 2010

yes.. thanks for your reply.

i think it applicable from next 20th of the subsequent .

ABHIJIT MANNA

ACCOUNTANT

447 Points Joined July 2016

I had also wrongfully taken input credit in the month of October'18 instead of March'19 though i do not have any credit at that time. For Example My input was Rs.500 in the month of March, but I had already taken the same amount in the month of October'18. My March'19 return is stiil pending. So what to do now?