Non-payment of Invoice within 180 day

[POLYPLEX CORPORATIONLTD]

Non-payment of GST within 180 day:Non-payment of GST within 180 day:

We have an MOM with Vendor on supply of machinery and its maintenance with payment terms and condition. Vendor give invoice & deposit GST to Government. After that we take ITC. As per GST Rule, We have to pay to Vendor within 180 days. But our Payment terms we have to pay i.e. partial in six month, one year and balance in two year.

Question :-

1. Whether we have to reverse the GST, if we not pay to vendor in six month?

2. How we will get credit after Two years?

3. Please guide the exact language or wording to written in the contract to avoid these problems in future?

AI Summary

Input Tax Credit reversal where supplier payment is not made within the statutory period leads to output tax liability and interest.
If the invoiced amount is not paid within 180 days from the date of invoice, the Input Tax Credit availed must be added back to output liability and paid with interest. ITC must be claimed within one year from invoice date or before the due date of filing the purchaser's GSTR 3B for the month of September following the financial year; it cannot be claimed after the extended period. Contractual payment terms should align with these GST timing rules; a practical approach is to reverse and later re avail ITC on payment, though interest disputes may arise.