Rule 43 (1) (h)

[Rajesh Kumar]

Respected experts,

Please explain Rule 43(1)(h).

Does we require to pay interest every month on the revers-able ITC ?

AI Summary

Understanding Rule 43(1)(h) on Monthly Interest for Reversible ITC in GST: Is it Always Necessary? A user inquired about Rule 43(1)(h) of the Goods and Services Tax (GST) regulations, specifically questioning whether interest must be paid monthly on reversible Input Tax Credit (ITC). An expert responded by highlighting the importance of understanding the definition of 'tax period.' The user clarified that Rule 43(1)(h) requires adding the amount with applicable interest to the output tax liability during the useful life of capital goods. Another expert suggested that if the reversal is done timely each month, paying interest might not be necessary.