One of my office clients has asked me about the non-receipt of Payment from Debtor in 180days.
What is the role of auditor under section 16(2)(d) of the GST Act if the payment is not made to the supplier of Goods in 180 days?? How this mechanism works?
Many are still confused with this act.
Posting the Provision Below
"Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed"
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