TaxTMI 
TaxTMI 
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.
Input credit reversal due to non payment in 180 days
20 Jan 2020 
3 Replies 
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Input tax credit reversal applies where recipient fails to pay supplier within the statutory period and interest is payable.
Where a recipient fails to pay the supplier within the prescribed period from the date of issue of the invoice, the recipient must add an amount equal to the input tax credit availed to his output tax liability along with interest. The statutory provision specifies that the time-limit is counted from the invoice date and that interest is payable from the invoice date, a rule which prevails over any contrary provision commencing interest from the date of availment in books. Reversal prior to the period's expiry does not avoid interest for the period up to reversal. (AI Summary)
Where a recipient fails to pay the supplier within the prescribed period from the date of issue of the invoice, the recipient must add an amount equal to the input tax credit availed to his output tax liability along with interest. The statutory provision specifies that the time-limit is counted from the invoice date and that interest is payable from the invoice date, a rule which prevails over any contrary provision commencing interest from the date of availment in books. Reversal prior to the period's expiry does not avoid interest for the period up to reversal. (AI Summary)