Interest Is Payable Only If Wrongly Availed ITC Is Utilised: CBIC
Mariya Paliwala
6 July 2023 3:45 PM GMT
The Central Board of Indirect Taxes and Customs (CBIC) has notified that interest is payable only if wrongly availed ITC is utilized.On the occasion of the six-year anniversary of the introduction of the GST, the CBIC explains that taxpayers are only liable to pay interest if they used an incorrectly claimed Input Tax Credit (ITC) to satisfy their GST due.A decision from the retrospective...
The Central Board of Indirect Taxes and Customs (CBIC) has notified that interest is payable only if wrongly availed ITC is utilized.
On the occasion of the six-year anniversary of the introduction of the GST, the CBIC explains that taxpayers are only liable to pay interest if they used an incorrectly claimed Input Tax Credit (ITC) to satisfy their GST due.
A decision from the retrospective date (01.07.2017) has been taken to provide relief to the taxpayers where interest has to be paid from the day when it has been wrongly utilized.
The rate of interest on wrongly availed and utilized ITC has been reduced to 18% from 24% w.e.f. 01.07.2017.
Click Here To Read the Notification
