Question 8 - What would happen of the ITC taken by the registered person if he has not paid the consideration along with tax within 180 days from the date of issue of invoice?
Input tax credit reversal results in addition to output tax liability with interest; credit may be reclaimed after payment. Where a registered person has availed input tax credit but fails to pay the consideration along with tax within the prescribed period, the amount of the credit is required to be added to the person's output tax liability, and the person must pay interest; the credit may be reclaimed upon payment of the outstanding consideration and tax.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input tax credit reversal results in addition to output tax liability with interest; credit may be reclaimed after payment.
Where a registered person has availed input tax credit but fails to pay the consideration along with tax within the prescribed period, the amount of the credit is required to be added to the person's output tax liability, and the person must pay interest; the credit may be reclaimed upon payment of the outstanding consideration and tax.
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