TaxTMI 
TaxTMI 
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
ITC wrongly availed
05 Jun 2018 
8 Replies 
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Interest on wrongly availed input tax credit may arise depending on reversal timing and reporting in returns.
The key operative position is that interest under the GST interest provision governs wrongly availed input tax credit claims; whether interest is chargeable depends on whether the wrong claim is merely reversed and reported in returns before departmental action or is detected through statutory matching and verification processes that trigger corrective adjustments and potentially higher interest or differential interest requirements. (AI Summary)
The key operative position is that interest under the GST interest provision governs wrongly availed input tax credit claims; whether interest is chargeable depends on whether the wrong claim is merely reversed and reported in returns before departmental action or is detected through statutory matching and verification processes that trigger corrective adjustments and potentially higher interest or differential interest requirements. (AI Summary)