Interest Applicability U/S 50(3)

[Ashiesh Prremji]

Dear Sir,

whether interest rate @24% mentioned u/s 50(3) is applicable on reversal of any excess claimed ITC or we need to pay @18% only ?

Thanks,

AI Summary

Debate on Whether 24% or 18% Interest Applies to Excess ITC Reversal Under Section 50(3) of GST Act A discussion on the applicability of interest rates under Section 50(3) of the GST Act focused on whether a 24% interest rate applies to the reversal of excess claimed Input Tax Credit (ITC) or if 18% is sufficient. One viewpoint suggests that 24% applies if the credit was availed but unused, referencing a Patna High Court ruling. Another perspective argues for 18% if the credit was availed in good faith. Additional comments clarify that 24% applies in cases of tax evasion or undue utilization, while 18% is for unintentional errors. The discussion also noted the absence of interest on interest provisions.