Goods and Services Tax – Started By: – LAKSHMINARAYANAN TR – Dated:- 19-3-2018 Last Replied Date:- 19-3-2018 – 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 section 43, shall pay interest on such undue or excess claim or on such undue or excess reduct
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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 availing arises only after verification from the department. If you claim wrongly and avail on the basis of wrongly filled in TRANS-1. Both are separate offences. In
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