TaxTMI 
TaxTMI 
Clarification on charging of interest under section 50(3) of the DGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof
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....2 (POLICY BRANCH) Circular No. 4/2023-GST of State Tax, dated August 23, 2023. Subject : Clarification on charging of interest under section 50(3) of the DGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof. - Reg. References have been received from trade requesting for clarification regarding charging of interest under sub-section (3) of section 50 of ....
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....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 its powers conferred by section 168 of the DGST Act, hereby clarifies the issues as unde....
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....idered for calculation of interest under rule 88B of the DGST 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 avail....
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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 the DGST Act, read with section 20 of the Integrated Goods and Services Tax Act, 2017 and sub-rule (3) of rule 88B of the D....