{"id":77282,"date":"2026-11-07T13:00:14","date_gmt":"2026-11-07T13:00:14","guid":{"rendered":""},"modified":"2026-11-07T13:00:14","modified_gmt":"2026-11-07T13:00:14","slug":"wrongly-availed-input-tax-credit-attracts-interest-only-when-utilised-while-residual-penalty-requires-an-independent-statutory-basis","status":"publish","type":"post","link":"https:\/\/goodsandservicetax.in\/GST\/?p=77282","title":{"rendered":"Wrongly availed input tax credit attracts interest only when utilised, while residual penalty requires an independent statutory basis."},"content":{"rendered":"<p>Wrongly availed input tax credit attracts interest only when utilised, while residual penalty requires an independent statutory basis.<br \/>Case-Laws<br \/>GST<br \/>Interest under Section 50(3) requires both wrongful availment and utilisation of input tax credit; wrongful credit reversed without utilisation does not attract interest. Under Rule 88B(3), credit is deemed utilised when the Electronic Credit Ledger balance falls below the wrongly availed credit. Balances under the IGST, CGST and SGST heads are considered collectively under the prescribed methodology. Penalty under Section 73 requires an independent statutory basis where the substantive tax demand arising from a GSTR-1\/GSTR-3B mismatch has been set aside; it cannot be retained merely as a matter of course.<br \/> TMI Updates &#8211; Highlights, quick notes, marquee, annotation, news, alerts <\/p>\n<p align=\"center\">=  =  =  =  =  =  =  =<\/p>\n<p align=\"center\"><strong>Plain text (Extract) only<\/strong><BR>For full text:-<a href=\"https:\/\/www.taxtmi.com\/highlights?id=105940\">Visit the Source <\/a><\/p>\n<p align=\"center\">=  =  =  =  =  =  =  =<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wrongly availed input tax credit attracts interest only when utilised, while residual penalty requires an independent statutory basis.Case-LawsGSTInterest under Section 50(3) requires both wrongful availment and utilisation of input tax credit; wrongfu&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-77282","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/77282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=77282"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/77282\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=77282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=77282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=77282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}