GSTAT says interest applies on wrongly used GST ITC even after reversal
In short
The GST Appellate Tribunal said interest must still be paid if wrongly claimed GST input tax credit was used before it was reversed.
This matters for taxpayers because it can raise the cost of using excess GST credit, even if they later correct it.
What the reporting says
The GST Appellate Tribunal held that interest under Section 50(3) remains payable when excess input tax credit was actually used before reversal. The ruling keeps the tax cost attached to the earlier use of the credit.
Why it matters
The GST Appellate Tribunal ruled that interest under Section 50(3) applies when excess GST input tax credit has actually been utilised before reversal. According to the summary, repaying the principal credit later does not erase the interest obligation. The decision affects taxpayers and businesses that have used excess ITC and later corrected it.