https://www.taxtmi.com/forum/issue?id=119035 Whether interest is payable where excess Input Tax Credit was reversed partly by cash despite an available unused credit ledger balance. The principal argument is that no interest should attach because the ITC remained unutilised and there was no revenue loss; the cash reversal is a procedural lapse. The department may nevertheless issue a show-cause notice and invoke interest on the cash component. Reliance can be placed on administrative clarification applying prospectively from its issuance and on contesting assessments that allege interest where no utilisation or revenue loss occurred. en-us Mon, 18 Mar 2024 10:43:49 +0530 Fri, 24 Jan 2025 10:40:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=119035 Whether interest is payable where excess Input Tax Credit was reversed partly by cash despite an available unused credit ledger balance. The principal argument is that no interest should attach because the ITC remained unutilised and there was no revenue loss; the cash reversal is a procedural lapse. The department may nevertheless issue a show-cause notice and invoke interest on the cash component. Reliance can be placed on administrative clarification applying prospectively from its issuance and on contesting assessments that allege interest where no utilisation or revenue loss occurred. Discussion-Forum GST Mon, 18 Mar 2024 10:43:49 +0530 https://www.taxtmi.com/forum/issue?id=119035