TaxTMI 
TaxTMI 
The assesse had output tax through credit ledger in 2017-18 on 03.01.2020 through DRC 03 during audit. The assesse had enough balance in the electronic credit ledger till that time. Whether interest under section 50(1) is applicable on the above transaction where there was enough balance in ecl?
Interest under 50(1)
15 Dec 2022 
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Interest under section 50(1) applies where undisclosed output tax is later paid despite available ITC balance.
Interest under section 50(1) applies where an output-tax liability that was not disclosed and paid in the return for the relevant period is later paid following audit or assessment, and the availability of an uninterrupted balance in the electronic credit ledger during the intervening period does not negate the interest obligation; a relief for wrongly availed but unutilized input tax credit may be available, but it is not available where output tax was not disclosed and subsequently paid. (AI Summary)
Interest under section 50(1) applies where an output-tax liability that was not disclosed and paid in the return for the relevant period is later paid following audit or assessment, and the availability of an uninterrupted balance in the electronic credit ledger during the intervening period does not negate the interest obligation; a relief for wrongly availed but unutilized input tax credit may be available, but it is not available where output tax was not disclosed and subsequently paid. (AI Summary)