180 Days Credit tobe Reversed

This query is : Resolved 
Quick Summary
If a payment to a vendor is not made within 180 days, and the vendor has filed their GST returns showing the credit in GSTR 2B, you will likely need to reverse the Input Tax Credit (ITC) you've claimed. While your auditor may object, the general rule is to reverse the ITC and pay any applicable interest. You can then reclaim the ITC once the payment is made.

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(Querist)
27 October 2021 Hi,

If payment not made with in 180 days to the vendor, where as vendor filed the GST Returns, and the same if showing in GSTR 2B..

My query is whether we have to reverse the ITC, as we have claimed ITC, Auditor is objecting to reverse the ITC

Is there is any case laws supporting..
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
28 October 2021 No case law supporting. Reverse ITC and claim when you make payment.
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CA Altamush Zafar

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CA Altamush Zafar (Expert)
31 October 2021 Yes you will have to reverse it and on making payment you can reclaim ITC. On reversing ITC you will have also have to pay interest.
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