Operational Definition of Claimed vs Availed

[LAKSHMINARAYANAN TR]

Section 50 (3) the act says any undue or excess credit claimed will be taxed to an extent of 24%.

However I would like to understand whether Claimed alone is exposed to interest or simple availed and not utilized will also be exposed to Interest of 24%

AI Summary

Interest on Undue ITC Claims: Section 50(3) Applies Regardless of ITC Utilization Status. A user inquired about whether interest under Section 50(3) of the CGST Act applies to input tax credit (ITC) that is merely claimed or also to ITC that is availed but not utilized. Respondents clarified that the law imposes interest on undue or excess ITC claims, regardless of utilization. One response highlighted a distinction between 'claimed' and 'availed,' noting that claiming involves meeting specific conditions before ITC is recorded in accounts, while availing follows this stage. Both actions can incur interest and penalties, with utilization not being a factor in these instances.