TaxTMI 
TaxTMI 
Dear Sir/Madam,
What is the rate of interest to be paid on revsersal of excess ITC is claimed .
Rate of Interest for Excess ITC
23 Oct 2019 
2 Replies 
1199 Views Asked by
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. (AI Summary)
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. (AI Summary)