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 .

AI Summary

18% Daily Interest on Excess ITC Reversal Under GST if Utilized; Calculated from Due Date to Payment Date. A query was raised regarding the rate of interest applicable on the reversal of excess Input Tax Credit (ITC) claimed under the Goods and Services Tax (GST). Two responses were provided, both indicating that an 18% interest rate applies if the reversed ITC was utilized. This interest should be calculated on a daily basis from the due date until the date of payment.