GST 180 Days Condition

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This discussion explores whether Input Tax Credit (ITC) is eligible when a business buys materials, manufactures a product, and then sells it back to the original supplier. The core question revolves around the GST 180-day condition and if offsetting payables with receivables can be considered 'payment in otherwise' to meet this requirement.

M Sairam

M Sairam (Querist)
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31 December 2020 Dear Experts,
We are buying the material from the Supplier. After manufacturing the product, selling to the same supplier who supplied the raw material. we want to set off the payable with receivable. ITC from purchase from supplier whether eligible or not with 180 days conditions.

Extraction from "Consideration" definition as - in relation to the supply, any payment made or to be made, whether in money or otherwise...............(So on)

Whether can we consider setoff the liability with receivable under payment in otherwise.