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TMI BlogOperational Definition of Claimed vs AvailedX X X X Extracts X X X X X X X X Extracts X X X X ..... Operational Definition of Claimed vs Availed X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four per cent., as may be notified by the Government on the recommendations of the Council." The law is clear. It levies interest on mere claim of excess ITC whether it is utilized or not. Reply By YAGAY AND SUN: The Reply: In our view there is a thing red line difference between Claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & Availed. Claim includes utilization but avail does not. Reply By KASTURI SETHI: The Reply: Difference between "Claimed" and "Availed" "Claimed" means you are to qualify the following parameters/conditions:- (i) Invoice is within one year (ii) Goods(inputs) have been received physically in the factory. (iii) Inputs are not in the list of (ineligible inputs/inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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&quo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t; 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 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fences. In both instances, utilization is not in picture. X X X X Extracts X X X X X X X X Extracts X X X X
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