TaxTMI 
TaxTMI 
Respected experts,
Please explain Rule 43(1)(h).
Does we require to pay interest every month on the revers-able ITC ?
Rule 43 (1) (h)
16 May 2023 
3 Replies 
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Reversal of capital goods input tax credit may require addition to output tax; timely periodic reversal may avoid interest.
Rule 43(1)(h) requires that the amount of input tax credit to be reversed, together with applicable interest, be added to the output tax liability of the person claiming the credit during every tax period of the capital good's useful life; timely reversals made in the prescribed tax period may obviate additional interest liability beyond that specified. (AI Summary)
Rule 43(1)(h) requires that the amount of input tax credit to be reversed, together with applicable interest, be added to the output tax liability of the person claiming the credit during every tax period of the capital good's useful life; timely reversals made in the prescribed tax period may obviate additional interest liability beyond that specified. (AI Summary)