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

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.... RGST 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 Rajasthan Goods and Services Tax Act, 2017 (hereinafter referred to as the "RGST Act") in the cases where IGST credit has been wrongly availed by a registered person. Clarif....

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.... been examined and to ensure uniformity in the implementation of the provisions of law across the field formations, in exercise of powers conferred by section 168 of the RGST Act, the issues are clarified as under : Sl. No. Issue Clarification 1. In the cases of wrong availment of IGST credit by a registered person and reversal thereof, for the calculation of interest under rule 88B of the RG....

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....ax 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) of section 50 of the RGST Act if, during the time period starting from such availment and u....

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.... credit, and will attract interest as per sub-section (3) of section 50 of the RGST Act, read with section 20 of the Integrated Goods and Services Tax Act, 2017 and sub-rule (3) of rule 88B of the RGST Rules. 2. Whether the credit of compensation cess available in electronic credit ledger shall be taken into account while considering the balance of electronic credit ledger for the purpose of cal....