Rate of Interest for Excess ITC

[Rajendra Prasad]

Dear Sir/Madam,

What is the rate of interest to be paid on revsersal of excess ITC is claimed .

[Shilpi Jain]

18% if the reversed ITC is something which was also utilised.

[Ganeshan Kalyani]

18% , to be calculated on day basis from due date till the date of payment.

AI Summary

Interest on reversal of excess ITC accrues from the due date until payment, calculated on a day to day basis.
Interest on reversal of excess input tax credit is charged at 18% per annum where the reversed ITC was utilised; it is calculated on a day to day basis from the due date until the date of payment.