Interest Under GST - When Does The Clock Start, When Does It Stop, And On What Amount? Part II - Wrongly Availed ITC and Interest: Why Availment Alone Is Not Enough

Interest Under GST - When Does The Clock Start, When Does It Stop, And On What Amount? Part II - Wrongly Availed ITC and Interest: Why Availment Alone Is Not Enough https://www.taxtmi.com/article/detailed?id=17177 Interest on wrongly availed input tax credit under Section 50(3) arises only when the credit is both wrongly availed and utilised. Under Rule 88B(3), utilisation is determined by the extent to which the Electronic Credit Ledger balance falls below the wrongly availed amount before reversal or payment. For IGST credit, IGST, CGST and SGST balances are considered together, while Compensation Cess credit is excluded where it was not legally usable for the relevant liability. Reversal before utilisation may prevent interest; ledger records must establish the usable balance throughout the relevant period. en-us Thu, 13 Aug 2026 08:32:30 +0530 Thu, 13 Aug 2026 08:32:31 +0530 TaxTMI RSS Generator Interest Under GST - When Does The Clock Start, When Does It Stop, And On What Amount? Part II - Wrongly Availed ITC and Interest: Why Availment Alone Is Not Enough https://www.taxtmi.com/article/detailed?id=17177 Interest on wrongly availed input tax credit under Section 50(3) arises only when the credit is both wrongly availed and utilised. Under Rule 88B(3), utilisation is determined by the extent to which the Electronic Credit Ledger balance falls below the wrongly availed amount before reversal or payment. For IGST credit, IGST, CGST and SGST balances are considered together, while Compensation Cess credit is excluded where it was not legally usable for the relevant liability. Reversal before utilisation may prevent interest; ledger records must establish the usable balance throughout the relevant period. Articles Goods and Services Tax - GST Thu, 13 Aug 2026 08:32:30 +0530 https://www.taxtmi.com/article/detailed?id=17177