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

Interest on wrongly availed input tax credit: standard interest applies; higher rate applies only for fraud or suppression.
Wrongly availed input tax credit under the reverse charge mechanism was reversed and tax repaid with interest; the standard interest rate applies where the taxpayer voluntarily reverses ITC, while a higher penal rate is reserved for cases involving suppression, fraud, or deliberate ITC mismatch.