TaxTMI 
TaxTMI 
Hello, one of my client's purchased goods and availed ITC in October 2018. But he made the entire payment to the supplier only in FY 20-21. My query is in which financial year can the revenue officer raise SCN for interest in this case? Should it be FY 19-20 where the period of 180 days is over or till the period payment is made in full settlement?
interest lability on ITC when payment to supplier is made after 180 days
19 Nov 2024 
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Interest liability on input tax credit: SCNs may issue after the prescribed period, with interest running until full payment.
Interest liability on availed input tax credit arises when payment to the supplier is not made within the prescribed period; a show cause notice may be issued in the financial year in which that period expires. Interest is regarded as accruing from the invoice date until full payment including tax is made, and demands may continue until full settlement of the supplier liability. (AI Summary)
Interest liability on availed input tax credit arises when payment to the supplier is not made within the prescribed period; a show cause notice may be issued in the financial year in which that period expires. Interest is regarded as accruing from the invoice date until full payment including tax is made, and demands may continue until full settlement of the supplier liability. (AI Summary)