Input tax credit interest liability amended to cover wrongly availed and utilised credit, with notified rate and prescribed calculation.

Interest liability under section 50 was substituted to require a registered person to pay interest where input tax credit has been wrongly availed and utilised. The interest rate is capped at twenty-four per cent, to be notified by the Government on the recommendations of the Council, and the manner of calculation is to be prescribed. The amendment applies retrospectively from 1 July 2017 and was brought into force on 5 July 2022.

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