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TMI BlogClarification on charging of interest under section 50(3) of the KGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof.X X X X Extracts X X X X X X X X Extracts X X X X ..... ngaluru-560009, Dated: 21-07-2023 COMMISSIONER OF COMMERCIAL TAXES CIRCULAR No. GST-05/2023 Subject: Clarification on charging of interest under section 50(3) of the KGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof. References have been received from trade requesting for clarification regarding charging of interest under sub-section (3) of section 50 of the Karnat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST, KGST and KGST taken together remains more than such wrongly availed IGST credit, at all times, till the time of reversal of the said wrongly availed IGST credit. 2. Issue has been examined and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the KGST Act, hereby clarifies the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for calculation of interest under rule 88B of KGST Rules and for determining as to whether the balance in the electronic credit ledger has fallen below the amount of wrongly availed input tax credit of IGST, and to what extent the balance in electronic credit ledger has fallen below the said amount of wrongly availed credit. Thus, in the cases where IGST credit has been wrongly availed and subse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of utilization will be the extent to which the total balance in electronic credit ledger under heads of IGST, CGST and KGST taken together falls below such amount of wrongly availed IGST credit, and will attract interest as per sub-section (3) of section 50 of KGST Act, read with section 20 of Integrated Goods and Services Tax Act, 2017 and sub-rule (3) of rule 88B of KGST Rules. 2. Whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit of compensation cess available in electronic credit ledger cannot be taken into account while considering the balance of electronic credit ledger for the purpose of calculation of interest under sub-rule (3) of rule 88B of KGST Rules in respect of wrongly availed and utilized IGST, CGST or KGST credit. 3. Difficulties, if any, in implementation of this circular may be brought to the notice of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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