https://www.taxtmi.com/forum/issue?id=117185 Interest is chargeable under Section 50(3) of the CGST Act for undue or excess input tax credit claims or undue reductions in output tax liability; the statute does not exempt interest where ledger balances remain sufficient. Section 42(10)'s matching mechanism that would operationalise such claims is not yet in force pending return-matching notifications. Judicial authority indicates interest may require proof of actual utilization of credit rather than mere electronic ledger reflection, and taxpayers can therefore dispute interest demands on factual and legal grounds. en-us Fri, 23 Apr 2021 18:49:24 +0530 Thu, 23 Jan 2025 15:54:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=117185 Interest is chargeable under Section 50(3) of the CGST Act for undue or excess input tax credit claims or undue reductions in output tax liability; the statute does not exempt interest where ledger balances remain sufficient. Section 42(10)'s matching mechanism that would operationalise such claims is not yet in force pending return-matching notifications. Judicial authority indicates interest may require proof of actual utilization of credit rather than mere electronic ledger reflection, and taxpayers can therefore dispute interest demands on factual and legal grounds. Discussion-Forum GST Fri, 23 Apr 2021 18:49:24 +0530 https://www.taxtmi.com/forum/issue?id=117185