ITC Reversal for Non Payment to Vendor within 180 days

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Accountant
23 Points Posted on 17 November 2023
Is there any tax benefits to the Vendor w.r.t ITC reversal
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On 17 November 2023 at 10:05 Report
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Quick Summary
This discussion clarifies the implications of the ITC reversal rule when a buyer fails to pay a vendor within 180 days. The reversal benefits the buyer's GSTIN by reducing their claimed ITC. While there are no direct tax benefits for the vendor, the rule encourages prompt payment. The system automatically reduces the buyer's ITC if payment isn't made, and suppliers also face consequences if they haven't paid their own GST liability.

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"Do the Right Thing...!!!"
128162 Points Posted on 17 November 2023
No...
It's benefit to GSTIN...

(But, As per this rule vendor can get payment ASAP 😇😇)
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On 17 November 2023 at 10:27
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Profession
28271 Points Posted on 17 November 2023
No point
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On 17 November 2023 at 11:07
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915 Points Posted on 19 November 2023
Now Itc reversal is very clear in portel , if buyer not make payment with in 180 days, system reducing itc claimed by the buyer.besides if supplier not paid cash to the government from his part,his buyer not claim itc fully on the grounds of invoice.
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On 19 November 2023 at 13:32

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