alleryStart learning →Can ITC in the electronic credit ledger be used to pay interest or penalty?
AYes, for any dues
BYes, penalty only
CYes, interest only
DNo, output tax only
Answer & Solution
Correct answer: D. No, output tax only
Credit ledger balance is restricted to paying output tax, so interest and penalty must be paid from the cash ledger.
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Related questions
Under section 53, CGST credit used for IGST dues makes central tax collected?When central tax credit pays IGST, the Centre transfers the sum to which account?The power to collect TCS operates without prejudice to what?Interest on a TCS mismatch added to a supplier's liability follows which provision?Rectification of a TCS statement is barred after the due date of which month?Who claims credit in the cash ledger of the amount an operator collected?The operator's annual TCS statement is due before which date after the year ends?Within how many days after month-end must the operator pay collected TCS?