Input credit reversal due to non payment in 180 days

[sunilkumar bhageria]

As per GST provision if payment is not made to supplier within 180 days from invoice date then input credit along with interest is required to be reversed. My queries is if we reverse the input credit before 180 days say after 160 -170 days once it become sure that we will not be able to make payment upto 180 days(due to some contractual agreement payment not yet due) even than interest is required to be paid for say upto 160 days or not.

AI Summary

Interest Required on Reversed GST Input Credit Before 180 Days Due to Section 16(2) of CGST Act A user inquired about the reversal of input credit under GST provisions if payment to a supplier is not made within 180 days from the invoice date. The question focused on whether interest must be paid if the input credit is reversed before 180 days, specifically between 160-170 days, due to contractual payment delays. Respondents clarified that interest is indeed required for the period up to the reversal, as Section 16(2) of the CGST Act mandates interest from the invoice date. The rule does not specify a 180-day limit, so the section's provisions prevail.