interest lability on ITC when payment to supplier is made after 180 days

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..... Hello, one of my client's purchased goods and availed ITC in October 2018. But he made the entire payment to the supplier only in FY 20-21. My query is in which financial year can the revenue officer raise SCN for interest in this case? Should it be FY 19-20 where the period of 180 days is over or till the period payment is made in full settlement? - Reply By Amit Agrawal - The Reply = First, .....

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..... IMHO, then prevailing second proviso to Section 16(2) of the CGST Act, 2017 read with Rule 37 of the CGST Rules, 2017 are NOT sufficient to demand ITC reversal or interest in given situation by the querist. Second, w.r.t. specific query raised ignoring my views above, relevant period to issue SCN is FY 2019-2020 if Dept. insists on demanding interest in given situation in my humble view. This is w .....

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..... ith the understanding that prescribed period of 180 days lapsed in FY 2019-2020. These are ex facie views of mine and the same should not be construed as professional advice / suggestion or recommendation. - Reply By Amit Agrawal - The Reply = One may also refer to discussion we had under Issue Id: 118960 bearing subject-line as 'Applicability of ITC reversal as per S.16(2)'. These are ex .....

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..... facie views of mine and the same should not be construed as professional advice / suggestion or recommendation. - interest lability on ITC when payment to supplier is made after 180 days - Query Started By: - Rajat Gupta Dated:- 19-11-2024 Last Replied Date:- 19-11-2024 Goods and Services Tax - GST - Got 2 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal o .....

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..... pinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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