Operational Definition of Claimed vs Availed
Query (Issue) Started By: – LAKSHMINARAYANAN TR Dated:- 19-3-2018 Last Reply Date:- 19-3-2018 Goods and Services Tax – GST
Got 3 Replies
GST
Section 50 (3) the act says any undue or excess credit claimed will be taxed to an extent of 24%.
However I would like to understand whether Claimed alone is exposed to interest or simple availed and not utilized will also be exposed to Interest of 24%
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
Section 50 (3) of CGST Act, 2017 stipulates that " a taxable person who makes an undue or excess claim of input tax credit under sub-section (10) of section 42 or undue or excess reduction in output tax liability under sub-section (10) of
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een received physically in the factory.
(iii) Inputs are not in the list of (ineligible inputs/input services under Section 17(5) of CGST Act & other Sections, if relevant.
(iv) Payment has been made against the invoice.
(v) If under RCM, cash payment has been made.
and so on.
After crossing the stage of 'claim' you will avail ITC in your books of accounts and other statutory records i.e. in various returns and declarations.
Thus the words, "availed" and "Claimed" both are prior to utilization.
If you claim ITC in your books of accounts or other statutory records, you are prone to interest and penalty both.
For example : You file TRANS-1 wrongly. Thus you are claiming ITC wrongly . In this question avail
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