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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 ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an undue or excess claim of input tax credit u nder 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Availed. Claim includes utilization but avail does not. - Reply By KASTURI SETHI - The Reply = Difference between Claimed and Availed Claimed means you are to qual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ify 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/input 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 bee n made. and so on. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 wr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ongly. 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 both instances, utilization is not in picture. - Operational Definition of Claimed vs Availed - Query Started By: - LAKSHMINARAYANAN TR Dated:- 19-3-2018 Goods and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Services Tax - GST - Got 3 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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