GST related query

124 views 2 replies

Ajnas

Student

844 Points Joined April 2020

As per rule 37(2) of gst act itc reversal if the payment is not within the 180 days
Please clarify me in the following doubt
1.payment means only for GST portion or whole amount in sundry creditors (ie, taxable value+GST)?
2. Instead of payment cash discount is received from creditors in that case 180 days payment rule is applicable?
3.while reclaim of such itc reversal, time limit of claiming itc (September return due date or actual date of filing the annual return which ever is lower?) Is applicable on such itc?

Replies (2)

JATINDER KUMAR

Accountant

3662 Points Joined May 2018

1) Full Amount

2) Not applicable

3) No time limit for re-claim of ITC

Shivam RC

Student

23688 Points Joined November 2017

1). As per the second Proviso to sub section (2) of Section 16 of the CGST Act 2017, it is clearly clarified that if the person fails to pay "both the consideration towards the supply along with the tax payable" within 180 days to the Supplier, then he is liable to reverse the ITC along with Interest @ 18% p.a. So payment means the consideration + GST portion.

2). Not Applicable...

3). You can reclaim the ITC after the payment is made to the Supplier. The time limit of Section 16(4) of the CGST Act 2017 ( Due Date of filing Return for the month of September or Date of filing Annual Return, whichever is earlier ) shall not be applicable in this scenario. Only thing is that the Interest @ 18% p.a. becomes your COST. You cannot claim the Interest part.