Interest on wrongly availed IGST credit hinges on the total ITC pool, not the IGST head alone. For interest calculations on wrongly availed IGST credit, the combined input-tax credit balance across IGST, CGST and SGST heads must be considered. If the combined ITC balance never falls below the wrongly availed amount between availment and reversal, no interest is attracted; if it does fall below, the shortfall equals the extent of utilisation and attracts interest. Compensation cess credit is excluded from this computation because it may only be used for compensation cess liabilities.
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 hinges on the total ITC pool, not the IGST head alone.
For interest calculations on wrongly availed IGST credit, the combined input-tax credit balance across IGST, CGST and SGST heads must be considered. If the combined ITC balance never falls below the wrongly availed amount between availment and reversal, no interest is attracted; if it does fall below, the shortfall equals the extent of utilisation and attracts interest. Compensation cess credit is excluded from this computation because it may only be used for compensation cess liabilities.
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