Interest on wrong ITC

[Kaustubh Karandikar]

XYZ had wrongly claimed ITC which they have reversed but without paying interest since in totality large amount of ITC is in balance to cover the ITC claimed. However, e.g. if ITC of CGST is wrongly claimed, in CGST sufficient balance is not available but is available in SGST and IGST to cover the wrong ITC. Are they required to pay interest in such situation for ITC on CGST?

AI Summary

Wrongly Claimed ITC Reversal: No Interest Required If Overall ITC Balance Exists, Says High Court Decision A discussion on a forum regarding Goods and Services Tax (GST) addressed whether interest is required on wrongly claimed Input Tax Credit (ITC) that has been reversed, given that there is sufficient ITC balance in other categories. A participant clarified that no interest is liable if there is an overall ITC balance, citing a High Court decision. The case referenced was M/S Radheshyam Spinning Pvt Ltd versus Union of India. Other participants expressed gratitude for the clarification and citation provided.