The Central Board of Indirect Taxes and Customs vide notification dated 5th July, 2022 has commenced the operation of the clause (c) of section 110 and section 111of the said Finance Act, 2022 .
The section amends the CGST Act, 2017 to the effect that where the input tax credit has been wrongly availed
and utilized, the registered person shall pay interest on such input tax credit wrongly availed and utilized, at such rate not exceeding twenty-four per cent. as may be notified by the Government, on the recommendations of the Council, and the interest shall be calculated, in such manner as may be prescribed.
The CGST Act, 2017 is further amended to provide that the a registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, to the electronic cash ledger for paying integrated tax, central tax, State tax, Union territory tax or cess.
