Input Tax Credit reversal: failure to pay supplier within prescribed period triggers reversal with interest and re availment on payment. Where a registered person avails input tax credit but fails to pay the supplier for the supply within the time limit under the second proviso to section 16(2), the person must pay an amount equal to the input tax credit availed along with interest under section 50 while furnishing FORM GSTR 3B for the tax period immediately following one hundred and eighty days from the invoice date; supplies treated as without consideration and amounts added under clause (b) of section 15(2) are deemed paid for this purpose, and if the person subsequently makes payment to the supplier, the person may re avail the ITC.
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Provisions expressly mentioned in the judgment/order text.
Input Tax Credit reversal: failure to pay supplier within prescribed period triggers reversal with interest and re availment on payment.
Where a registered person avails input tax credit but fails to pay the supplier for the supply within the time limit under the second proviso to section 16(2), the person must pay an amount equal to the input tax credit availed along with interest under section 50 while furnishing FORM GSTR 3B for the tax period immediately following one hundred and eighty days from the invoice date; supplies treated as without consideration and amounts added under clause (b) of section 15(2) are deemed paid for this purpose, and if the person subsequently makes payment to the supplier, the person may re avail the ITC.
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