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

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....rences have been received from trade requesting for clarification regarding charging of interest under sub-section (3) of section 50 of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as the "UPGST Act") in the cases where IGST credit has been wrongly availed by a registered person. Clarification is being sought as to whether such wrongly availed IGST credit would be considered to have been utilized for the purpose of charging of interest under sub-section (3) of section 50 of UPGST Act, read with rule 88B of Uttar Pradesh Goods and Services Tax Rules, 2017 (hereinafter referred to as the "UPGST Rules"), in cases where though the available balance of IGST credit in the electronic credit ledger of the said registe....

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....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 availed and subsequently reversed on a certain date, there will not be any interest liability under sub-section (3) of section 50 of UPGST Act if, during the time period starting from such availment and up to such reversal, the balance of input tax credit (ITC) in the electronic credit ledger, under the heads of IGST, CGST and SGST taken together, has never fallen below the amount of such wrongly availed ITC, even if available balance of IGST credit in ....