TMI BlogInterest on "ITC reversed through DRC-03 partly in cash and partly from credit ledger"X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear experts, We had taken excess ITC during 2017-18 but the said ITC was always remain in our credit ledger. During the year 2019-20, the said ITC is reversed through DRC-03 . Instead of reversing the whole amount of ITC from credit ledger, assessee has reversed some amount in cash. Whether interest is required to be paid on cash reversal of ITC as assessee had sufficient balance of ITC in their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit ledger and the same was never utilised but wrongly reversed some ITC from cash ledger? - Reply By Shilpi Jain - The Reply = There should not be an interest liability since you always had the credit balance until reversal. THough curious to know why a part of it was reversed in cash ledger? - Reply By Assistant Manager - The Reply = But department is demanding interest on cash reversal of IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C. Is it correct? There may be two reasons: 1. Due to lack of knowledge, accountant reversed the part amount in cash, or 2. At that time, Circular 192/04/2023-GST dt. 17.07.2023 was not in existence. - Reply By KASTURI SETHI - The Reply = Interest is not payable. (i) Clarification is always applicable from the date of issuance ----- in the case of AAKAVI SPINNING MILLS PVT. LTD. Versus AUTHORITY F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OR CLARIFICATION AND ADVANCE RULING, CHENNAI - 2017 (12) TMI 1013 - MADRAS HIGH COURT . (ii) The department will issue SCN. (iii) The issue is worth fighting. (iii) If ITC is not utilised, there is no revenue loss. Hence interest for what ? (iv) Only a procedural or technical lapse. - Reply By Assistant Manager - The Reply = Thanks to all for your valuable suggestions. - Reply By Ganeshan Kalyani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - The Reply = I agree with the view of the experts. - Interest on "ITC reversed through DRC-03 partly in cash and partly from credit ledger" - Query Started By: - Assistant Manager Dated:- 18-3-2024 Last Replied Date:- 25-3-2024 Goods and Services Tax - GST - Got 5 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanageme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntindia - 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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