XYZ wrongly claimed ITC twice for the same transaction in March’2019 which they want to reverse now. Are they required to pay 24% interest even if they are holding sufficient balance in credit ledger every month to cover the excess credit? if not required to pay interest then under which provisions?
Kaustubh Karandikar Asked question January 6, 2021
In our view in case the ITC has not been utilised , no interest should apply and reversal of ITC can be made without any payment of interest as no benefit for such excess availment has been taken.
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Frah Saeed Changed status to publish January 12, 2021