Bhagyashri Dhavale (13 Points)
16 June 2019
Pankaj Rawat
(GST Practitioner)
(55047 Points)
Replied 16 June 2019
CA Haritha Komma
(Chartered Accountant)
(1147 Points)
Replied 16 June 2019
ITC wrongly availed but not utilised do not attract interest liability..
Pankaj Rawat
(GST Practitioner)
(55047 Points)
Replied 18 June 2019
@ CA HARITHA
ONCE YOU HAVE CLAIMED ITC IN 3B, ITS BEING TRANSFERRED TO CREDIT LEDGER OF TAXPAYER, NOW WHETHER ITS BEING UTILISED OR NOT DOES NOT MATTER, HAVE TO DEPOSIT INTEREST FOR THE SAME.
AS PER SECTION 73 OF CGST ACT
Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful misstatement or suppression of facts.
ITS OR BEFORE INPUT TAX CREDIT WRONGLY AVAILED , MEANS WHETHER YOU HAVE AVAILED OR UTILSED IN BOTH THE CONDITION INTEREST IS APPLICABALE (REFER SECTION 50 OF CGST ACT)
CA Haritha Komma
(Chartered Accountant)
(1147 Points)
Replied 18 June 2019
Sir,
Section 73 is recovery section - that is wrongly availed ITC can be recovered by the department. Sec 73 do not mention of interest on wrong availment. The only section that levies interest is section 50.
50(1) Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax
50(3) 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
Section 50(3) speaks of wrong availment of ITC u/s 42(10) that deals with matching of ITC which is not in existence as on today as there is no GSTR 2/3.
Hence, wrong availment without utilisation do not attract interest as per sec 50..
,
Pankaj Rawat
(GST Practitioner)
(55047 Points)
Replied 18 June 2019
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