Interest on excess / wrong ITC

[Kaustubh Karandikar]

If ITC is wrongly claimed excess or claimed though not eligible. 1) Under which Section it is mentioned that Interest is not required to be paid if sufficient balance is maintained to cover the excess credit 2) This provision is valid from which date?

AI Summary

Debate on Interest for Excess ITC Claims Under GST: Section 50(3) and Impact of GSTR-2 Non-Implementation A discussion on a forum addresses the issue of interest on excess or wrongly claimed Input Tax Credit (ITC) under the Goods and Services Tax (GST) framework. Participants debate whether interest is required if sufficient balance is maintained to cover excess credit. Section 50(3) of the CGST Act, 2017, mandates interest on undue or excess ITC claims, but some argue this is contestable due to the non-implementation of GSTR-2, which affects the matching concept. A Patna High Court ruling is cited, indicating interest is recoverable only if ITC is actively utilized, not merely reflected in the ledger.