Section 21 of CGST Act 2017: Manner of Recovery of Credit (ITC) Distributed in Excess
Provisions under Section 21 of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Manner of Recovery of Credit (ITC) Distributed in Excess”, are as under:
Section 21 of CGST Act 2017: Manner of Recovery of Credit Distributed in Excess (CHAPTER V – INPUT TAX CREDIT)
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.
The Central Goods and Services Tax (CGST) Act, 2017 was notified by Govt. on 12 April, 2017 and CBIC has notified the commencement date for various Sections/ Provisions thereof from time to time. Subsequently, Govt. has notified the Central Goods and Services Tax (CGST) (Amendment) Act, 2018 on 30 Aug. 2018. However, commencement date of amended provisions of various Sections is to be separately notified by CBIC, except where specifically mentioned in the CGST Amendment Act, 2018 itself.