ITC wrongly availed

[Ankit TMI]

What are the interest and penal liability in case a supplier has wrongly availed CGST / SGST credit against IGST. However, the same has been reversed before utilisation. Kindly quote specific section that affects the said scenario.

Thanks

AI Summary

Clarification Sought on Interest Rates for Reversal of Wrongly Availed GST Credit; Debate Over 18% or 24% Under Section 50 A discussion on the Goods and Services Tax (GST) forum addresses the issue of wrongly availed Central Goods and Services Tax (CGST) or State Goods and Services Tax (SGST) credit against Integrated Goods and Services Tax (IGST). The primary concern is the interest and penalty liability if the credit is reversed before utilization. Responses suggest that if interest at 24% is paid upon reversal before a Show Cause Notice (SCN) is issued, no penalty will be imposed. However, another opinion suggests an 18% interest rate is applicable under Section 50 of the CGST Act, with further clarification needed on specific provisions.