Mr. Ranjan availed ITC of 1,00,000 in GSTR-3B for the month of June, 2024. The Output tax liability for June 2024 was Nil. His intra-State output…

(a) Output tax liability for the month of July, 2024 = 5,00,000 x 18% = 90,000. Mr. Ranjan has utilized wrongly availed ITC amounting to 90,000 for discharging this tax liability while filing GSTR-3B for the month of July 2024. In case of wrongful availment and utilization of ITC, the interest shall be calculated on the amount of ITC wrongly availed and utilised, for the period starting from the date of utilisation of such wrongly availed ITC till the date of reversal of such credit or payment of tax in respect of such amount at the specified rate. No interest is payable for 10,000 since it was not utilized even though wrongly availed. The date of utilisation of such ITC shall be taken to be earlier of the following:- (a) Due date of filing of return [22 nd August, 2024] or (b) Actual date of filing of return [25 th August, 2024]. i.e. 22 nd August, 2024 Amount of ITC wrongly availed and utilized = 90,000 Date of utilization of wrongly availed ITC =22 nd August, 2024 Date of payment of tax = 30 th September, 2024 4 Period of delay = 23 rd August, 2024 to 30 th September, 2024 (Both days inclusive) = 39 days Rate of interest = 18% Interest will be as follows: = 90,000 x 18% x 39/365 = 1,731 (rounded off) [865each under CGST and SGST] 4 It has been logically assumed that date of payment is same as date of reversal i.e 30.09.2024.