CBIC Notifies Levy on Interest on Undue/Excess Claim of ITC with Retrospective Effect

CBIC Notifies Levy on Interest on Undue/Excess Claim of ITC with Retrospective Effect The Central Board of Indirect Taxes and Customs (CBIC) vide Notification No. 09/2022–Central Tax Dated 5th July 2022 notifies Levy on Interest on Undue/Excess Claim of ITC with Retrospective Effect. A taxable person who makes an unauthorised or excessive claim for input tax credit under section 42(10) or an unauthorised or excessive reduction in output tax liability under section 43(10) is required to pay interest on the unauthorised or excessive claim or reduction, according to section 50(3) of the CGST Act, 2017. With effect from July 1, 2017, it is proposed in the Finance Bill of 2022 to retroactively replace the existing sub-section 50(3) in order to impose interest on incorrectly claimed and utilised input tax credits and to specify how interest is calculated in these circumstances. The Notification is Given Below: S.O. 3070(E).—In exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the Finance Act, 2022 (6 of 2022), the Central Government hereby appoints the 5th day of July, 2022, as the date on which the provisions of clause (c) of section 110 and section 111of the said Act shall come into force. For Official Notification Download PDF Given Below: