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Taxation Tripura Ministry of Finance Tripura State Goods and Services Tax Act, 2017

Clarification on charging of interest under section 50(3) of the CGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof

19-Jul-2023 | Circular No. 04/2023 ? GST (State)

Government of Tripura has reiterated a circular issued by CBIC dated 17th July 2023 regarding the clarification on the charging of interest under Section 50(3) of the CGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof. By virtue of this circular, the following has been clarified: 1. When the balance of ITC, under the heads of IGST, CGST, and SGST of electronic credit ledger taken together falls below such wrongly availed amount of IGST credit, then it will amount to the utilization of such wrongly availed IGST credit and the extent of utilization will be the extent to which the total balance in electronic credit ledger under heads of IGST, CGST, and SGST taken together falls below such amount of wrongly availed IGST credit, and will attract interest Section 50(3) of CGST Act. 2. The credit of compensation cess available in the electronic credit ledger cannot be taken into account while considering the balance of the electronic credit ledger for the purpose of calculation of interest under Rule 88B(3) of CGST Rules in respect of wrongly availed and utilized IGST, CGST or SGST credit.

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