The Government of Gujarat on October 01, 2023, issued a notification regarding the Clarification on charging of interest in cases of wrong availment of IGST credit and reversal
The following has been clarified namely: -
• In the cases of wrong availment of IGST credit by a registered person and reversal thereof, for the calculation of interest, whether the balance of input tax credit available in the electronic credit ledger under the head of IGST only needs to be considered or the total input tax credit available in electronic credit ledger, under the heads of IGST, CGST, and GGST taken together, has to be considered.
• Whether the credit of compensation cess available in the electronic credit ledger shall be taken into account while considering the balance of the electronic credit ledger for the purpose of calculation of interest under sub-rule (3) of rule 88B of CGST Rules in respect of wrongly availed and utilized IGST, CGST or GGST credit.
[Circular No. 192/04/2023-GST]
