https://www.taxtmi.com/forum/issue?id=118605 A tax demand under assessment provisions must be met in accordance with recovery rules; debiting the electronic credit ledger to pay assessed tax does not avoid interest, and the proviso to the interest provision does not allow using ITC to escape interest. Interest and penalty are payable in cash only and cannot be discharged from the credit ledger. For reversal of ineligible input tax credit that was not used for tax payment, no interest is required on the reversal if sufficient credit ledger balance exists to effect the reversal. en-us Tue, 27 Jun 2023 17:50:16 +0530 Thu, 23 Jan 2025 15:54:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=118605 A tax demand under assessment provisions must be met in accordance with recovery rules; debiting the electronic credit ledger to pay assessed tax does not avoid interest, and the proviso to the interest provision does not allow using ITC to escape interest. Interest and penalty are payable in cash only and cannot be discharged from the credit ledger. For reversal of ineligible input tax credit that was not used for tax payment, no interest is required on the reversal if sufficient credit ledger balance exists to effect the reversal. Discussion-Forum GST Tue, 27 Jun 2023 17:50:16 +0530 https://www.taxtmi.com/forum/issue?id=118605