Rule 37 of CGST Rules – Reversal of input tax credit in the case of non-payment of consideration

(updated as on 15.11.2017)

(1) Aregistered person, who has availed of input tax credit on any inward supply of goods orservices or both, but fails to pay to the supplier thereof, the value of such supply along withthe tax payable thereon, within the time limit specified in the second proviso to sub-section(2)of section 16, shall furnish the details of such supply, the amount of value notpaid and the amount of input tax credit availed of proportionate to such amount not paid tothe supplier in FORM GSTR-2 for the month immediately following the period of onehundred and eighty days from the date of the issue of the invoice:
Provided that the value of supplies made without consideration as specified inSchedule I of the said Act shall be deemed to have been paid for the purposes of the secondproviso to sub-section (2) of section 16.
(2) The amount of input tax credit referred to in sub-rule (1) shall be added to the output taxliability of the registered person for the month in which the details are furnished.
(3) The registered person shall be liable to pay interest at the rate notified under sub-section(1) of section 50 for the period starting from the date of availing credit on such supplies tillthe date when the amount added to the output tax liability, as mentioned in sub-rule (2), ispaid.
(4) The time limit specified in sub-section (4) of section 16 shall not apply to a claim for reavailingof any credit, in accordance with the provisions of the Act or the provisions of thisChapter, that had been reversed earlier.

CHAPTER V

INPUT TAX CREDIT

Rule 36 :Documentary requirements and conditions for claiming input tax credit
Rule 37 : Reversal of input tax credit in the case of non-payment of consideration
Rule 38 :Claim of credit by a banking company or a financial institution
Rule 39 :Procedure for distribution of input tax credit by Input Service Distributor
Rule 40 :Manner of claiming credit in special circumstances
Rule 41 :Transfer of credit on sale, merger, amalgamation, lease or transfer of abusiness
Rule 42 :Manner of determination of input tax credit in respect of inputs or input servicesand reversal thereof
Rule 43 :Manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases
Rule 44 :Manner of reversal of credit under special circumstances
Rule 44A : Manner of reversal of credit of Additional duty of Customs in respect of Golddore bar
Rule 45 :Conditions and restrictions in respect of inputs and capital goods sent to the jobworker