GSt Interest Rate

[kiran kumar]

Dear Sir,

We availed RCM gst credit Wrongly from Aug-17 to Feb-17 after that we realized RCM credit not available, since we are dealing with Exempted products and repaid the same in the month of Mar-18 along with Interest at the rate of 18%.

Now while filling 9c auditor is asking Interest Rate is 24% instead of 18%

Please suggest which rate is correct

Thanks&Regards,

Kiran Kumar

AI Summary

Correct Interest Rate for Repayment of Wrongly Availed GST Credit Under RCM is 18%, Not 24% A user inquired about the correct interest rate for repaying wrongly availed GST credit under the Reverse Charge Mechanism (RCM) for exempted products. The user had repaid the credit with 18% interest, but their auditor suggested a 24% rate. Two respondents clarified that the 18% rate was correct, as the 24% rate applies only in cases of fraud or suppression of facts, which did not apply here. The user expressed gratitude for the clarification provided in the discussion.