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

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....04/2023-GST, dated 17.07.2023, issued by Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs. ***** In the reference cited, the Central Board of Indirect Taxes & Customs, Department of Revenue, Ministry of Finance, Government of India, New Delhi, has issued Circular No 192/04/2023-GST, dated 17.07.2023 on the recommendations of the GST Council. Hence, following pari-materia circular is issued. 2. References have been received by GST Council, from trade requesting for clarification regarding charging of interest under sub- section (3) of section 50 of the Tamil Nadu Goods and Services Tax Act, 2017 (hereinafter referred to as the "TNGST Act") in the cases where IGST credit has b....

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....T, CGST and SGST taken together, has to be considered. Since the amount of input tax credit available in electronic credit ledger, under any of the heads of IGST, CGST or SGST, can be utilized for payment of liability of IGST, it is the total input tax credit available in electronic credit ledger, under the heads of IGST, CGST and SGST taken together, that has to be considered for calculation of interest under rule 88B of TNGST 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....