GST REVERSAL IF PAYMENT OF INVOICE AMOUNT NOT MADE

[SAFETAB LIFESCIENCE]

Dear Experts,

Please inform in details about the reversal of ITC taken if the payment of value of bill is not paid within 180 days.

Also, please confirm, if the GST amount is paid and part payment is made. In such scenario, what is the procedure ??? How to calculate 180 days ?? It is applicable for Goods and Service ????

AI Summary

Input tax credit reversal where recipient fails to pay supplier within prescribed period; partial payments trigger proportionate reversal and interest.
Where a recipient fails to pay the supplier the value of supply along with tax within the prescribed period from invoice issue, an amount equal to the input tax credit availed must be added to output tax liability with interest. Partial payment results in proportionate reversal of ITC. The provision applies to both goods and services and the prescribed period is calculated with reference to the time of supply.