wrong availment of ITC and reversal thereof
Query (Issue) Started By: – BalKrishan Rakheja Dated:- 17-4-2018 Last Reply Date:- 19-4-2018 Goods and Services Tax – GST
Got 4 Replies
GST
A dealer availed ITC amounting to ₹ 5.25 Crore of CGST in the month of July 2017 as input tax credit without receiving the goods and also availed the same amount as transitional credit in the month of Sept 2017 in respsect of stock held with the excise invoices. As the ITC credit availed in the month of July 2017 was not available therefore he was asked to reverse the same immediateley. But he reversed the same in the month of February 2018 from the IGST Credit. Moreover he utilized this amount (wrongly credit availed in July 2017) for payme
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to him
Reply By KASTURI SETHI:
The Reply:
Query-wise reply is as under:-
(1) NO
(2) Yes. Now interest is chargeable even if taken but not utilized. You have taken and used both wrongly.
(3) Yes.
(4) The dealer will have to pay GST in cash as no credit was legally available to dealer.
In case the dealer deposits due GST along with interest on his own i.e. without show cause notice he will get the benefit of reduced penalty.
Reply By YAGAY AND SUN:
The Reply: We understand that It is very grave offence. Please check the appended News. Chartered Accountant and Excise Officer Arrested for Wrongful IPT Claim worth 52 Crore
A Chartered Accountant and an excise and taxation department officer (ETO), namely Rajesh Arora and Gaurav Bahal h
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