https://www.taxtmi.com/forum/issue?id=117887 Wrongful utilisation of Input Tax Credit occurred where the supplier, confused about the Reverse Charge Mechanism for purchases from unregistered dealers, availed and used ineligible ITC in GSTR 3B while IGST payments remained in the cash ledger. The taxpayer later reversed the wrongly utilised ITC in the annual return and adjusted the cash ledger IGST toward tax liability. The department's audit has queried these transactions and issued a demand for interest in respect of the periodal corrections. en-us Sun, 03 Apr 2022 16:14:53 +0530 Thu, 23 Jan 2025 15:54:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=117887 Wrongful utilisation of Input Tax Credit occurred where the supplier, confused about the Reverse Charge Mechanism for purchases from unregistered dealers, availed and used ineligible ITC in GSTR 3B while IGST payments remained in the cash ledger. The taxpayer later reversed the wrongly utilised ITC in the annual return and adjusted the cash ledger IGST toward tax liability. The department's audit has queried these transactions and issued a demand for interest in respect of the periodal corrections. Discussion-Forum GST Sun, 03 Apr 2022 16:14:53 +0530 https://www.taxtmi.com/forum/issue?id=117887