CBIC issued clarification on Interest Payable on Late Payment of Tax and Wrongly Availed ITC:

CBIC issued clarification on Interest Payable on Late Payment of Tax and Wrongly Availed ITC In the event of 6 years of GST, the CBIC issued some clarifications and one of the clarification is on the aspect of interest. CBIC via his twitter handle notified this clarifications. The clarifications are as follows: 1. Taxpayers who wrongly availed ITC are not liable for Interest until they utilized the same for payment of GST liability. 2. A decision was made from a retrospective date (01.07.2017) to offer relief to taxpayers, where interest must be paid from the day it was wrongfully utilised. 3. With effect from July 1, 2017, the rate of interest on wrongly obtained and utilised ITC has been decreased from 24% to 18%. Note: Pay Interest only if wrongly availed ITC is utilized.