Interest on wrongly availed IGST credit arises only when aggregate ITC falls below the wrongly availed amount. Interest under section 50(3) and rule 88B is triggered only when the total input tax credit balance in the electronic credit ledger, taken together under IGST, CGST and SGST, falls below the amount of wrongly availed IGST credit; the extent of interestable utilization equals the shortfall of that aggregate balance. Compensation cess credit is excluded from the aggregate and cannot be used to avoid interest, since it is usable only for compensation cess payment.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Interest on wrongly availed IGST credit arises only when aggregate ITC falls below the wrongly availed amount.
Interest under section 50(3) and rule 88B is triggered only when the total input tax credit balance in the electronic credit ledger, taken together under IGST, CGST and SGST, falls below the amount of wrongly availed IGST credit; the extent of interestable utilization equals the shortfall of that aggregate balance. Compensation cess credit is excluded from the aggregate and cannot be used to avoid interest, since it is usable only for compensation cess payment.
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