- Yes. In terms of Section 21 of the Act, the recovery provisions can be initiated if the Input Service Distributor distributes credit in contravention of the law resulting in excess distribution of credit to one/ more recipients of credit.
- Such credit can be recovered from the recipients along with applicable 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.
(ICAI FAQ PUBLICATION 06-09-2017 -: Recovery of Credit distributed in excess : FAQ NO. 40)