PAYMENT NOT SEND IN 180 DAYS

This query is : Resolved

Quick Summary

If you haven't paid your suppliers within 180 days of the invoice date, you'll generally need to reverse your Input Tax Credit (ITC). This reversal is typically required with interest. While you might not face a penalty for simply reversing the ITC, you can reclaim it once the payment is made to the supplier.

jaigurudev

jaigurudev (Querist)
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16 November 2024 I HAVE PURCHASE GOODS BUT I NOT PAID AMOUNT IN 180 DAYS DUE TO POOR QUALITY OF GOODS ALSO I NOT REVERSE THE INPUT BY MISTAKE.PLEASE ADVICE ME WHAT WILL BE FINE OR PENALTY?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 November 2024 Reverse ITC no penalty.

jaigurudev

jaigurudev (Querist)
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17 November 2024 Respected sir,
payment has been done but after 180 days still i have to reverse input?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 November 2024 In the second proviso to Section 16(2) it sets out that ITC to be reversed with interest where the recipient of goods/services fails to pay the consideration with tax to the supplier within a period of 180 days from the date of issue of the invoice by the supplier.

You can claim ITC after making payment.

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