Interest on wrongly availed ITC: charged only when total ITC balance across tax heads falls below the wrongly availed amount. For interest under rule 88B, calculation must consider the aggregate ITC balance across IGST, CGST and SGST in the electronic credit ledger. No interest is payable if, between availment and reversal, the combined ITC balance never falls below the wrongly availed IGST amount; interest arises only to the extent the total ledger balance falls short of that amount. Compensation cess credit is excluded from this aggregate because it cannot be applied to CGST, SGST or IGST liabilities or reversals.
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 ITC: charged only when total ITC balance across tax heads falls below the wrongly availed amount.
For interest under rule 88B, calculation must consider the aggregate ITC balance across IGST, CGST and SGST in the electronic credit ledger. No interest is payable if, between availment and reversal, the combined ITC balance never falls below the wrongly availed IGST amount; interest arises only to the extent the total ledger balance falls short of that amount. Compensation cess credit is excluded from this aggregate because it cannot be applied to CGST, SGST or IGST liabilities or reversals.
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