ITC Reversal

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....TC Reversal<br> Query (Issue) Started By: - Ethirajan Parthasarathy Dated:- 16-3-2021 Last Reply Date:- 17-3-2021 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>Trader A&#39;s GSTR 2A reflect....

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....s ITC of &#8377; 1,00,000- for April20, out of which he utilizes &#8377; 18,000/- towards output tax for April. Let us assume that there are no purchases or sales for next 6 months. One of the vendor....

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....s to Trader "A" has not been paid for more than 180 days and the ITC reported by such vendor is &#8377; 20,000/- Now trader has to reverse the ITC availed to the extent of &#8377; 20,000/-. Since the....

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....re is sufficient ITC available, the trader has to only reverse the ITC, to bring down the ITC in Electronic Credit Ledger to &#8377; 62,000/- (100000 - 18000 - 20000) My question is whether Trader &q....

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....uot;A&quot; is still liable for interest on reversal of ITC. If yes, is it on 18,000/- or 20,000/- Reply By KASTURI SETHI: The Reply: In this scenario, interest is to be paid on &#8377; 20,000/-. ....

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....Reply By Himansu Sekhar: The Reply: I agree with Kasturi sir<br> Discussion Forum - Knowledge Sharing ....