demand paid by debiting credit ledger- what about interest

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....emand paid by debiting credit ledger- what about interest<br> Query (Issue) Started By: - giri gattupalli Dated:- 27-6-2023 Last Reply Date:- 29-6-2023 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>respected sir, demand order in Form DRC -07 was issued on my client amounting to Rs 10,00,000 for fy 2020-21. and tax liability shown in notice is genuine and my client ready to pay off the l....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....iability by debiting his electronic credit ledger. and the proper officer also agreed to do so. there was credit laying in my client&#39; s input tax credit ledger continuously right from fy 2020-21. and no cash component was used to pay tax liability. in this scenario whether there is liability to pay interest or not. please discuss thanking you Reply By Amit Agrawal: The Reply: Kindly refer ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to discussion under Issue-ID: 118576 bearing subject-line as &#39;Interest on wrong ITC&#39;. Reply By KASTURI SETHI: The Reply: DRC-07 is an order to pay tax either under Section 73 or 74 of the CGST Act. It is a fact that your client has not deposited tax on his own (voluntarily). If Section 73 or 74 of the CGST Act is invoked for recovery, interest will have to be paid. No benefit of ITC havi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng sufficient balance in Electronic Credit Ledger, is available as per proviso to Section 50 of the CGST Act. Reply By Padmanathan Kollengode: The Reply: What is the demand relating to? Is it short payment of OPT? is it excess ITC availment? Reply By Rajagopalan Ranganathan: The Reply: Sir, Interest and penalty is always payable in cash only. You cannot discharge interest and penalty by deb....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....iting the credit ledger. If you take an ineligible ITC which is not utilised for payment of tax then while reversing the ineligible credit you need not pay interest while reversing the ineligible credit provided there is sufficient balance in your credit ledger for making the reversal.<br> Discussion Forum - Knowledge Sharing ....