https://www.taxtmi.com/forum/issue?id=118671 Interest is payable on wrongly availed and utilised input tax credit, calculated on the amount so utilised from the date of utilisation until reversal or tax payment, with rule guidance that ITC is deemed utilised when electronic credit ledger falls below the wrongly availed amount. Self-initiated reversal and payment of interest before commencement of departmental proceedings can avoid penalty and limit liability, whereas reversal after initiation of proceedings or after notice leads to interest on the gross availed amount and attracts higher penalties. Voluntary payment via DRC-03 allows pre-notice or within-30-day intimation and updates electronic ledgers upon filing. en-us Tue, 01 Aug 2023 09:56:46 +0530 Thu, 23 Jan 2025 14:23:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=118671 Interest is payable on wrongly availed and utilised input tax credit, calculated on the amount so utilised from the date of utilisation until reversal or tax payment, with rule guidance that ITC is deemed utilised when electronic credit ledger falls below the wrongly availed amount. Self-initiated reversal and payment of interest before commencement of departmental proceedings can avoid penalty and limit liability, whereas reversal after initiation of proceedings or after notice leads to interest on the gross availed amount and attracts higher penalties. Voluntary payment via DRC-03 allows pre-notice or within-30-day intimation and updates electronic ledgers upon filing. Discussion-Forum GST Tue, 01 Aug 2023 09:56:46 +0530 https://www.taxtmi.com/forum/issue?id=118671