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<h1>Taxpayers Win: No Interest Chargeable for Incorrect Input Tax Credit Under Section 50(3) of WB GST Act</h1> HC of Calcutta ruled that interest cannot be levied under Section 50(3) of West Bengal GST Act for incorrect Input Tax Credit availment. Referencing ... Levy of interest under Section 50(3) of the West Bengal Goods and Service Tax Act, 2017 - wrong availment and reversal of input tax credit - retrospective amendment by the Finance Act, 2022 with effect from 1 July 2017 - relegation to the adjudicating authority for fresh considerationLevy of interest under Section 50(3) of the West Bengal Goods and Service Tax Act, 2017 - wrong availment and reversal of input tax credit - retrospective amendment by the Finance Act, 2022 with effect from 1 July 2017 - Validity of levying interest under Section 50(3) in cases of wrong availment and subsequent reversal of input tax credit in light of the retrospective amendment and subsequent administrative and judicial developments. - HELD THAT: - The High Court noted that the question whether interest under Section 50(3) can be levied where input tax credit had been wrongly availed and subsequently reversed is no longer res integra in view of Circular No. 192/04/2023 - GST (dated 17.7.2023) and several High Court decisions referred to in the order. The respondents admitted that Section 50(3) was amended by the Finance Act, 2022 with retrospective effect from 1 July 2017, which, as accepted by the respondents' counsel, entitles the petitioner not to pay interest on the input tax credit so availed and reversed; however the benefit of that amendment had not been given to the petitioner. On that basis the Court set aside the impugned orders and relegated the petitioner to the adjudicating authority for fresh consideration in accordance with law, thereby directing fresh adjudication taking into account the retrospective amendment and the subsequent administrative and judicial pronouncements.Impugned orders dated 15.10.2020 and 11.01.2022 set aside; matter remitted to the adjudicating authority for fresh consideration in accordance with law.Final Conclusion: Writ petition allowed; earlier orders setting interest liability aside and matter remanded to the adjudicating authority for fresh consideration in light of the retrospective amendment by the Finance Act, 2022 and the later Circular and judicial decisions. The High Court of Calcutta ruled that interest cannot be levied under Section 50(3) of the West Bengal Goods and Service Tax Act 2017 for wrong availment of Input Tax Credit. The court referred to Circular No. 192/04/2023-GST and previous judgments. An amendment in the Finance Act, 2022 entitles the petitioner not to pay interest on reversed Input Tax Credit. The writ petition was allowed, and the impugned orders were set aside for fresh consideration.
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