CA Final/Inter Fast track classes available for May 20 attempt. Call: 1800-3000-0505

Section 16(2) and rule 37 of gst

This query is : Resolved 

Dear Experts,
Pls clarify:- section 16(2) of cgst act. And rule 37 State that if No payment is made to the supplier within the 180 days the ITC taken shall be added back to the output liability. Pls tell me if anyone has not paid within the stipulated deadline than how the ITC shall be add back to the output liability! Pls clarify with an example if possible....

Thanks In Advance

below the example
(B) ITC Reversed
(1) As per Rule 42 & 43 of CGST/SGST rules
(C) Net ITC Available (A) - (B)

Sir actually it's not about reversal of ITC, it's section state that if recipient fails to pay the consideration an amount equal to the ITC availed by the recipient shall be added to his output tax liability! Let me highlight this line shall be added back to his output tax liability, here it's state that shall be add back to his output tax liability. So pls clarify In this case how ITC shall be added back to output tax liability

You need to be the querist or approved CAclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

CA Learning