Hi. I have availed ITC wrongly on building construction during FY 2017-18. Now during filing of GSTR-9C, i want to reverse the same. I have balance in my electronic credit ledger throughout the GST regime, i.e. from 01.07.17 to 08.11.19 (till today) due to TRAN-1 credit. Whether I am liable to pay interest from the date of wrong availment of ITC till the date of reversal of ITC, i.e., today? Kindly clarify

Reply— 

As per Section 50(3) of CGST Act, 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 excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four per cent.

Thus, taxpayer has to reverse the excess ITC claimed with interest as per above provision.