input credit

[ashwin jivanlal]

Section 16 of CGST Act Povides Claims of Input Tax Credit,

sub section c of section 2 of section 16 put restriction on receiver of good/services on the basis of of credit reflected in 2B, receiver can claim credit only if supplier has filed form R1 and it is reflected in 2B.

sub section (d) of section 2 of section 16 provides that if receiver has not made the payments to supplier whithin 180 days from date of bill the receiver needs to reverse the input credit and liable to pay along with interest,

MY QUERY;

if supplier has paid tax and filed his form F1 showing the tax paid by him but receiver did not pay to supplier in 180 days , as per sub section c of 2 of 16 receiver can claim input credit but as per sub section(d) of 2 of section 16 receiver has not made payments to supplier in 180 days he has to reverce the credit and to pay with interest..

goverment has received gst payments in time the sufferer is supplier why gst is to be paid twice on same transaction double with interest? one supplier has paid in time and on reversal receiver will pay with interest. pl. answer.

AI Summary

Debate on GST Input Tax Credit: 180-Day Payment Rule Under Section 16 Sparks Double Taxation Concerns and Business Practice Misalignment. A forum discussion revolves around the Goods and Services Tax (GST) and the conditions for claiming Input Tax Credit (ITC) under Section 16 of the CGST Act. A key issue is the requirement for the receiver to pay the supplier within 180 days to avoid reversing the credit with interest. Participants debate whether this provision results in double taxation, as the supplier has already paid GST. Some argue that the 180-day rule protects suppliers, while others suggest it may not align with business practices where payment terms exceed this period. Suggestions include treating unpaid amounts as loans to avoid interest penalties.