Provisions under Section 21 of the CGST Act, 2017 relating to “Manner of Recovery of Credit (ITC) Distributed in Excess”:
Section 21: Manner of Recovery of Credit Distributed in Excess (CHAPTER V: INPUT TAX CREDIT) [*1]
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 or section 74A [*2], as the case may be, shall, mutatis mutandis, apply for determination of amount to be recovered.
Notes (History of Amendments in Bare Text):
1. CGST Section 21 introduced vide GOI Notification dated 12/04/2017, followed with CBEC Notification 9/2017 on commencement date of 01/07/2017.
2. The text “or section 74A” inserted after the text “section 73 or section 74”, vide Section 120 of the Finance Act (No. 2) 2024, followed with Notification 17/2024 on commencement date of 01/11/2024.
| You can also visit CGST Act, 2017 (last updated 30/09/2025) or GST Updates for more updates from time to time. |