We have received an inward supply invoice in April 2022, but we could not make payment to the vendor within 180 days neither we have reversed the ITC on non payment within time limit.
However payment is made to vendors after 250 days of issue of invoice.
Interest should be calculated from which date to which date. Pls give section and rule reference for the same.
Discussion on Interest for Delayed Vendor Payments Under GST: Section 16(2), Rule 37, and Section 50 Debated A participant in a discussion forum raised a query about calculating interest on delayed payments to vendors under GST rules, specifically when payment is not made within 180 days, and ITC is not reversed timely. Responses referenced Section 16(2) and Rule 37, indicating interest starts after the 180-day period. One respondent argued that interest under Section 50 might not apply, citing changes in Rule 37 and the distinction between non-payment and failure to pay. The discussion included interpretations of legal provisions and emphasized that these views are not professional advice. (AI Summary)
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