Chapter V (Sections 16-21) of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions related to Input Tax Credit. Section 21 of Central Goods and Services Tax Act, 2017 (12 of 2017) provides for manner of recovery of credit distributed in excess under CGST Act 2017.
Recently, we have discussed in detail section 20 (i.e. Manner of distribution of credit by Input Service Distributor) of CGST Act 2017. Today, we learn the provisions of section 21 of the CGST Act 2017. Complete Details of CGST Section 21 – Manner of recovery of credit distributed in excess. You may CLICK HERE to download list of all sections of CGST Act 2017 in PDF format.
Did you know? CGST Act 2017 have been enacted by Parliament in the Sixty-eighth Year of the Republic of India to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto.
Notes on Section 21 of CGST Act 2017
Where the Input Service Distributor distributes the credit in contravention of the provisions contained in section 20 resulting in excess distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipients along with interest, and the provisions of section 73 or section 74, as the case may be, shall, mutatis mutandis, apply for determination of amount to be recovered.