Facts:
1. A & Co P Ltd has maintained the credit balance as under:
SGST: Rs.150,75,000/- which was maintained since July 2019 to December 2022 (January 2023 onwards the SGST balance is at Rs.510,000/-)
2. There was a ITC disallowance (in SCN) of IGST Rs.1500,000/- for the month of November 2020.
3. The payment of IGST Rs.15lakh is made on 05/02/2023 through Form GST DRC-03
My Query:
Whether interest on disallowance of IGST ITC on Rs.15 lakh from November 2020 till 04/02/2023 will be applicable or not?
Regards
Debate on Interest Payable for Disallowed IGST Input Tax Credit: Exploring GST Law Complexities and Interpretations A company faced a disallowance of Input Tax Credit (ITC) for IGST amounting to Rs. 15 lakh from November 2020, which was reversed in February 2023. The discussion revolves around whether interest is payable on this disallowed ITC. Various contributors expressed differing opinions. Some argued that interest is payable from the date of utilization due to the reduction in SGST balance, while others noted that no interest is due until December 2022 as the ITC balance was maintained. The debate highlights the complexities and evolving interpretations of GST laws, particularly regarding interest calculations on wrongly availed ITC. (AI Summary)
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