Interest on Reversal of Unutilsed ITC under GST

Introduction

Input tax credit (ITC) is the tax paid by the buyer on the purchase of goods or services. Such tax which is paid at the purchase when reduced from liability payable on outward supplies is known as an input tax credit. In other words, the input tax credit is tax reduced from output tax payable on account of sales.

In the present Scenario Under the GST law, the eligibility of input tax credit has been made subject to deposit of the tax by Supplier and filing of valid returns by Supplier.

Source Taxguru

---

---