Clarification on charging of interest under section 50(3) of the CGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof

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....charging of interest under section 50(3) of the CGST 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 Central Goods and Services Tax Act, 2017 (hereinafter referred to as the "CGST Act") in the cases where IGST credit has been w....

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.... 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 Chief Commissioner of State tax, in exercise of the powers conferred by section 168(1) of the GGST Act, hereby clarifies the issues as under : Sl. No. Issue Clarification 1. In the cases of wrong availment of IGST credit by a regis....

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....ance 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 availed and subsequently reversed on a certain date, there will not be any interest liability under sub-section (3) ....

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....heads of IGST, CGST and GGST taken together falls below such amount of wrongly availed IGST credit, and will attract interest as per sub-section (3) of section 50 of the CGST Act, read with section 20 of the Integrated Goods and Services Tax Act, 2017 and sub-rule (3) of rule 88B of the CGST Rules. 2. Whether the credit of compensation cess available in electronic credit ledger shall be taken in....