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Clarification on charging of interest under section 50(3) of the WBGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof
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.... 16/2023 (Corresponding Central Circular No. 192/04/2023-GST) DATED: 10.10.2023 Subject: Clarification on charging of interest under section 50(3) of the WBGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof. References have been received from trade requesting for clarification regarding charging of interest under sub-section (3) of section 50 of the West Ben....
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....ST taken together remains more than such wrongly availed IGST credit, at all times, till the time of reversal of the said wrongly availed IGST credit. 2. Issue has been examined and to ensure uniformity in the implementation of the provisions of law across the field formations, the Commissioner, in exercise of his powers conferred by section 168 of the WBGST Act, hereby clarifies the issues as ....
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....dered for calculation of interest under rule 88B of WBGST Rules and for determining as to whether the balance in the electronic credit ledger has fallen below the amount of wrongly availed input tax credit of IGST, and to what extent the balance in electronic credit ledger has fallen below the said amount of wrongly availed credit. Thus, in the cases where IGST credit has been wrongly ava....
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....and the extent of utilization will be the extent to which the total balance in electronic credit ledger under heads of IGST, CGST and SGST taken together falls below such amount of wrongly availed IGST credit, and will attract interest as per sub-section (3) of section 50 of WBGST Act, read with section 20 of Integrated Goods and Services Tax Act, 2017 and subrule (3) of rule 88B of WBGST Rules. ....