Non-payment of consideration triggers addition of equivalent input tax credit to output tax liability and interest applies.
Non-payment of consideration within the invoice based 180 day period requires the recipient to declare the invoices and the proportionate Input Tax Credit in the prescribed return for the month immediately following that period and to add an amount equal to that ITC to output tax liability; interest is payable from the date the credit was availed until the added output tax liability is paid, and on payment of consideration the ITC may be re availed as permitted by the provisos and rules. (AI Summary)