ITC by a client was correctly availed. Supplier did not remit tax to the Govt. FY 2020-21. Said ITC was voluntarily reversed upon receipt of audit paras from department. Is the tax payer required to also remit Interest u/s.50(3).
Said Section 50 states 'Where ITC has been wrongly availed and utilised .........'. In our case ITC not wrongly availed.
Request view of experts. Also, case law references would be gratefully acknowledged. Thanks
Input tax credit interest dispute over voluntary reversal after supplier default and the scope of section 50(3). Input tax credit was correctly availed under GST, but the supplier failed to remit the tax to the Government. The recipient later reversed the credit voluntarily after audit objections. The issue is whether interest under section 50(3) is payable where the credit was not wrongly availed, and the discussion focuses on the meaning of the statutory condition covering credit that is wrongly availed and utilised. (AI Summary)
TaxTMI 
TaxTMI 
