Interest on wrongly availed input tax credit applied retrospectively; rules distinguish net versus gross liability calculations.
Transfers of cash ledger balances between distinct GSTINs under the same PAN are permitted where the transferor has no unpaid liabilities and must be effected via FORM GST PMT-09. Section 50(3) amendments (retrospective) and new rules prescribe interest on wrongly availed and utilized ITC, distinguishing interest on net liability (where returns for the period are filed late but declared timely) from interest on gross liability in other cases. Wrongful availment is treated as utilized when the credit ledger balance falls below the wrongfully availed amount; the utilized amount equals the shortfall and the utilization date is the earlier of the return due date or filing date, or the ledger debit date. (AI Summary)