Interest on wrong claim of transition credit
Rule 4 of draft GST Transitional Provision Rules provides that amount credited under sub-rule (3) of rule 1 may be verified and proceedings under Section 73 or, as the case may be Section 74 shall be initiated in respect of any credit wrongly availed, whether wholly or partly. Thus it also provides for demand of interest in case of wrong claim of transition credit.
Issue
The rate on interest applicable in case of wrong claim of transitional credit is not provided for.
Suggestion
It is suggested that the words ‘…..interest under sub-section 1 of Section 50 will apply….’ be added to the said rule.
Source ICAI Suggestions on GST Rules Submitted to Govt of India