Excess itc claimed in fy 17-18

[Amit Sharma]

Hi Everyone

Can anyone tell me if i had claimed excess itc in fy 17-18 and reversed it in march 2019 then there will be need to pay interest in GSTR-9 of fy 17-18 ?

Thanks in advance.

[Atul Rathod]

Yes, you need to pay if you have utilized the said credit.

[Ganeshan Kalyani]

Yes , interest is applicable.

[KASTURI SETHI]

Section 50 of CGST Act is very much clear.

AI Summary

Interest on excess input tax credit applies where the claimed credit was utilized, even if later reversed.
If excess input tax credit claimed in an earlier year was utilised, interest is payable even if the credit is reversed in a later return; the obligation to pay interest arises from the utilisation of the excess credit, with Section 50 of the CGST Act cited as the governing provision.