Penalty on wrongly availed ITC

[Rajesh Kumar]

Sir/Madam

Section 50(3) has been amended as interest is payble only on the Wrongly availed and utilised ITC.

I want to know that if anyone availed ITC and not utilised the same. Is he liable for penalty under section 73 and 74. As there is still a word " avail or utilise".

How can we defend to waive off penalty ?

If anyone has not filed GSTR 9 , however, due date has been gone, Can he take benefit to waive penalty under Section 73 instead of section 74?

Should department charge penalty u/s 73 instead of section 74 till not filed GSTR 9?

Regards

AI Summary

Interest on wrongly availed input tax credit now limited to instances where the credit is utilised, altering exposure to assessments.
Amendment to Section 50(3) makes interest payable only where wrongly availed input tax credit is utilised, with retrospective effect from 01.07.2017 via Notification No. 9/2022. Penal liability for ineligible ITC remains governed by separate assessment provisions and may be invoked even if the credit was not utilised; non-filing of annual reconciliation return does not by itself avoid penalty and attracts late fees.