Section 21 of CGST Act- Manner ofrecovery ofcreditdistributed inexcess

Where the Input Service Distributor distributes the credit in contraventionof the provisions contained in section 20 resulting in excess distribution of credit toone or more recipients of credit, the excess credit so distributed shall be recoveredfrom such recipients along with interest, and the provisions of section 73 or section 74,as the case may be, shall, mutatis mutandis, apply for determination of amount to berecovered.

Note : Section 20 relates toManner ofdistribution ofcredit byInput ServiceDistributor
Note : Section 73relates toDeterminationof tax notpaid or shortpaid orerroneouslyrefunded or
input taxcredit wronglyavailed orutilized forany reasonother thanfraud or anywillful misstatementor suppressionof facts.
Note : Section 74 relates toDeterminationof tax notpaid or shortpaid orerroneouslyrefunded or
input taxcredit wronglyavailed orutilized byreason offraud or anywillful misstatementor suppressionof facts.
Note : Due date for Input service distributor’s return for the month of July,2017 under GST(the first return to be filed by ISDs) wasextended to 13th October,2017.
(To view the official notification no. 31/2017 dated 11th September – click here)
 

Section 21 of CGST Act- Manner ofrecovery ofcreditdistributed inexcess
CHAPTER V
INPUT TAX CREDIT
Chapter V of the CGST Act,2017 covers 6 sections relating toINPUT TAX CREDIT.The following sections from the CGST Act,2017 are available for your ready reference.
Section 16-Eligibility andconditions fortaking inputtax credit
Section 17 –Apportionment of credit and blocked credits
Section 18 –Availability ofcredit inspecialcircumstances
Section 19 –Taking inputtax credit inrespect ofinputs andcapital goodssent for jobwork
Section 20 –Manner ofdistribution ofcredit byInput ServiceDistributor
Section 21 –Manner ofrecovery ofcreditdistributed inexcess