Rules Rule 37 of CGST Rules 2017 i.e. Reversal of input tax credit in the case of non-payment of consideration i.e. Reversal if Payment not made in 180 days
Financial Year: 2017
Rule 37 of CGST Rules 2017
Reversal of input tax credit in the case of non-payment of consideration
(1) A registered person,
who has availed of input tax credit
on any inward supply of goods or services or both,
but fails to pay to the supplier thereof,
the value of such supply along with the tax payable thereon,
within the time limit specified in the second proviso to sub-section(2) of section 16,
shall furnish the details of such supply,
the amount of value not paid
and the amount of input tax credit availed of proportionate to such amount not paid to the supplier
in FORM GSTR-2 for the month
immediately following the period of one hundred and eighty days
from the date of the issue of the invoice
Provided that the
value of supplies made without consideration as specified in Schedule I of the said Act
shall be deemed to have been paid
for the purposes of the second proviso to sub-section (2) of section 16
Provided further that the
value of supplies on account of any amount added in accordance with the provisions of section 15(2)(b)
shall be deemed to have been paid
for the purposes of the second proviso to sub-section (2) of section 16
(2) The amount of input tax credit referred to in sub-rule (1)
shall be added to the output tax liability
of the registered person
for the month in which the details are furnished.
(3) The registered person shall be
liable to pay interest at the rate notified under sub-section (1) of section 50
for the period starting
from the date of availing credit on such supplies
till the date when the amount added to the output tax liability,
as mentioned in sub-rule (2),
is paid.
(4) The time limit specified in sub-section (4) of section 16
shall not apply to a claim for re-availing of any credit,
in accordance with the provisions of the Act
or the provisions of this Chapter,
that had been reversed earlier.