Gst set off reverse due to non payment within 180 days

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kaushal laturiya

article

266 Points Posted on 16 December 2024

in fy 20-21 rs. 250000 payment to supplier paid after 180 days and now department issue gst audit for same fy 20-21 and they disallow set off equivalent to payment not paid to supplier, but after ending 180 days clients paid all dues to creditors but still officer don't accept it and deny its set off and charge interest also, is there any provision in gst law under which payment made after 180 days is allowed.

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9615 Points Posted on 16 December 2024

According to Rule 37 of the CGST Rules, if a taxpayer fails to pay the supplier for an inward supply of goods or services within 180 days of the invoice date, they must reverse the input tax credit (ITC) claimed along with the interest payable.

However, if the payment is made after 180 days, the taxpayer can reclaim the ITC that was initially reversed.

This is not subject to the time limit of 180 days. In your case, since you paid the supplier after 180 days, you can reclaim the ITC that was reversed.

You should maintain proper documentation to support the payment made and the ITC reclaimed.

It's recommended that you consult with a tax professional or accountant to ensure you comply with the GST regulations and accurately claim the ITC. They can help you navigate the process and address any concerns with the GST audit.