Dear Sir, Pls clarify that when penal Interest @ 18% will be levied & when interest @ 24% will be levied ??
For eg- Pls clarify that —
a) If a Person claims excess ITC in a month & then reverses the excess ITC in next month, then whether on reversal interest @ 24% should be charged or interest @ 18% ??
b) Similarly, In case of delay in payment of RCM liabililty, Interest @ 24% or 18% should be paid ??
The system of communication of discrepancy as envisaged in Sec 42/43 is still not in place till now. Only GSTR-2A does not mean SEc 42/43 are operational and thus in our view 18% intt should be levied.
Team Clearmytax.in
As per Sec 50(3) of the CGST Act, 2017, intt @ 24% applies only in cases where excess ITC claim has been made u/s 42(10) / 43(10). These sections are relating to matching, reversal and reclaim of ITC / matching, reversal and reclaim of reduction in ouput tax liability. As the mechanism of matching etc as specfied in these sections is still not in place, intt @ 18% should currently be applicable in all cases.
Delay in RCM lian intt @ 18% will apply.
Team Clearmytax.in
Dear Sir, If ITC as per GSTR-2A is Rs 20000. And ITC claimed in 3B is Rs 30000. Then as per Notice of Deptt, whether the Assessee should pay Interest @ 24% or 18% , on reversal of ITC, as this is Matching of ITC ??