ITC REVERSAL FOR NON PAYMENT TO SUPPLIER WITHIN 180 DAYS

Home Forums GST ITC REVERSAL FOR NON PAYMENT TO SUPPLIER WITHIN 180 DAYS

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    rabadiahitesh
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    ITC to be reversed along with interest where recipient has failed to pay to supplier within 180 days.

    Now question is whether interest can be reversed from ITC balance available or need to pay in cash still you have a ITC balance available.

    becoz word in Second proviso to Sec. 16(2) of the Central Goods & Services Tax (“CGST”) Act, 2017 provides for reversal of ITC on account of non-payment

    “…….. an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed

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