GSt Interest Rate, Goods and Services Tax - GST

[kiran kumar]

Dear Sir,

We availed RCM gst credit Wrongly from Aug-17 to Feb-17 after that we realized RCM credit not available, since we are dealing with Exempted products and repaid the same in the month of Mar-18 along with Interest at the rate of 18%.

Now while filling 9c auditor is asking Interest Rate is 24% instead of 18%

Please suggest which rate is correct

Thanks&Regards,

Kiran Kumar

Posts / Replies

[CA Venkata prasad Pasupuleti]

Hi

Correct rate is 18%. The rate of 24% is applicable for ITC mismatch cases which are not being implemented now & deferred.

[KASTURI SETHI]

Interest @24% is applicable only if the elements of suppression of the facts, fraud etc with an intent to evade payment of tax are present. Here you have reversed ITC along with interest 18% on your own. So no mala fide intention is present in this case. Hence 18% correct de jure.

[kiran kumar]

Thanks for your Replies