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TMI BlogClarification on charging of interest under section 50(3) of the DGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereofX X X X Extracts X X X X X X X X Extracts X X X X ..... Tax, dated August 23, 2023. Subject : Clarification on charging of interest under section 50(3) of the DGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof. - Reg. References have been received from trade requesting for clarification regarding charging of interest under sub-section (3) of section 50 of the Delhi Goods and Services Tax Act, 2017 (hereinafter referred to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll 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 Commissioner, in exercise of its powers conferred by section 168 of the DGST Act, hereby clarifies the issues as under : Sl. No. Issue Clarification 1. In the cases of wrong availment of IGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 subsequently reversed on a certain date, there will not be any interest liability under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it ledger under heads of IGST, CGST and SGST taken together falls below such amount of wrongly availed IGST credit, and will attract interest as per sub-section (3) of section 50 of the DGST Act, read with section 20 of the Integrated Goods and Services Tax Act, 2017 and sub-rule (3) of rule 88B of the DGST Rules. 2. Whether the credit of compensation cess available in electronic credit ledger sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot 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 the DGST Rules in respect of wrongly availed and utilized IGST, CGST or SGST credit. 3. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the Pr. Commissioner, Trade and Taxes. Pr. Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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