https://www.taxtmi.com/forum/issue?id=118298 Section 16(2) proviso conditions continuance of input tax credit on payment to the supplier within a statutory period and mandates reversal plus interest where the recipient fails to pay. Contributors debate whether a supplier's prior tax payment or an agreed longer payment term prevents immediate reversal, arguing that the proviso operates upon an actual failure to pay (i.e., supplier grievance) rather than mere non payment at the statutory cut off; pre GST Cenvat circulars and cases are invoked to support a commercial context interpretation, and practical consequences including reclaiming ITC after payment and the applicability of interest are examined. en-us Fri, 23 Dec 2022 12:02:47 +0530 Fri, 24 Jan 2025 10:40:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=118298 Section 16(2) proviso conditions continuance of input tax credit on payment to the supplier within a statutory period and mandates reversal plus interest where the recipient fails to pay. Contributors debate whether a supplier's prior tax payment or an agreed longer payment term prevents immediate reversal, arguing that the proviso operates upon an actual failure to pay (i.e., supplier grievance) rather than mere non payment at the statutory cut off; pre GST Cenvat circulars and cases are invoked to support a commercial context interpretation, and practical consequences including reclaiming ITC after payment and the applicability of interest are examined. Discussion-Forum GST Fri, 23 Dec 2022 12:02:47 +0530 https://www.taxtmi.com/forum/issue?id=118298