TIME LIMIT TO MAKE PAYMENT TO SUPPLIERS

[SURYAKANT MITHBAVKAR]

Under GST regime we avail input credit as soon as Goods received in our premises/factory.

Please let us know what is time limit to make payment to the suppliers though our credit is not disallow.

AI Summary

GST Rule: Pay Suppliers Within 180 Days to Avoid Adding Input Tax Credit to Output Tax Liability Under CGST Act, 2017. A discussion on the Goods and Services Tax (GST) regime addressed the time limit for making payments to suppliers. Under the CGST Act, 2017, if a recipient fails to pay the supplier within 180 days from the invoice date, the availed input tax credit will be added to the recipient's output tax liability, along with interest. Rule 37 (1) of the CGST rules requires that details of unpaid amounts and corresponding input tax credit be reported in FORM GSTR-2. The consensus among participants was that payment must be made within 180 days.