ITC Reversal of Transitional Credit

No, Rule 37 of the CGST Act, which states that Input Tax Credit (ITC) claim will be reversed if the supplier is not paid within 180 days, is not applicable to Transitional Credit (Cenvat and VAT at-hand as on 01.07.17). The provisions of Rule 37 specifically apply to the regular ITC claimed on eligible inputs, input services, and capital goods under GST. Transitional Credit has its own set of rules and conditions, as specified in the transitional provisions of the GST law.

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