Whether Interest is Payable on ITC Reversal under Rule 37 when Sufficient Balance Exists in Electronic Credit Ledger?

Whether Interest is Payable on ITC Reversal under Rule 37 when Sufficient Balance Exists in Electronic Credit Ledger? https://www.taxtmi.com/forum/issue?id=121081 Interest on input tax credit reversal for non-payment to vendors within 180 days is considered where adequate Electronic Credit Ledger balance existed and the credit was never utilised for output tax liability. The view advanced is that interest should not arise because Section 50(3) applies where credit is both wrongly availed and utilised. Rule 88B is identified as governing the methodology for computing interest. en-us Mon, 24 Aug 2026 11:40:18 +0530 Mon, 07 Sep 2026 08:35:08 +0530 TaxTMI RSS Generator Whether Interest is Payable on ITC Reversal under Rule 37 when Sufficient Balance Exists in Electronic Credit Ledger? https://www.taxtmi.com/forum/issue?id=121081 Interest on input tax credit reversal for non-payment to vendors within 180 days is considered where adequate Electronic Credit Ledger balance existed and the credit was never utilised for output tax liability. The view advanced is that interest should not arise because Section 50(3) applies where credit is both wrongly availed and utilised. Rule 88B is identified as governing the methodology for computing interest. Discussion-Forum GST Mon, 24 Aug 2026 11:40:18 +0530 https://www.taxtmi.com/forum/issue?id=121081