Home Forum Goods and Services Tax - GST Month 3 2021 2021 (3) This
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ITC Reversal - Goods and Services Tax - GSTExtract Trader A's GSTR 2A reflects ITC of ₹ 1,00,000- for April20, out of which he utilizes ₹ 18,000/- towards output tax for April. Let us assume that there are no purchases or sales for next 6 months. One of the vendors to Trader A has not been paid for more than 180 days and the ITC reported by such vendor is ₹ 20,000/- Now trader has to reverse the ITC availed to the extent of ₹ 20,000/-. Since there is sufficient ITC available, the trader has to only reverse the ITC, to bring down the ITC in Electronic Credit Ledger to ₹ 62,000/- (100000 - 18000 - 20000) My question is whether Trader A is still liable for interest on reversal of ITC. If yes, is it on 18,000/- or 20,000/-
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