GST reversal u/s 37 for creditors

[RAVI MUNDRA]

i have both sales and purchase from one party. i have maintained 2 ledgers for Purchase and Sales. We always have Receivalbe  from this party.

Even though Se maintain a net "Debit balance" (meaning more receivables than payables) with this party overall, the GST departments query focuses on specific credit balances (your payables) that have exceeded the 180-day limit.

AI Summary

GST reversal obligations for aged creditor balances: invoice netting may avoid reported overdue payables, dispute risk persists.
Revenue enquiries focus on specific aged creditor entries recorded in the purchase ledger even if the overall net position with the counterparty is a debit. To avoid showing individual aged payables, audited accounts should offset supply invoices against trade receivables so that no credit entry appears overdue; a departmental circular allowing netting may apply, but the department may contest this and relief may need adjudication. Books of account are statutory records and the presentation of offsets may be challenged by the department.