Liability under sundry creditors

There is no liability on sundry creditors.
or your query is not clear
pls elobrate your query.

Sagar Ji,

one of the taxpayer has shown a huge sum of amount in their sundry creditors head during the financial year 2017-18 & 2018-19. As such they have purchased goods from their sundry creditors.

But showing them in the balance sheet even after passing of two years that the taxpayer has not made payment to their sundry creditors and available ITC on said purchase. which appears to be recoverable.

If taxpayer has not made payment to creditors, from whom they purchased the Goods within period of 180 days than taxpayer is required to reverse the Input tax credit which taken earlier in GST return.

Thanks Sagar Ji

You are most welcome.

Yes As per the Proviso under Section 16 of CGST Act R/w rule 37 , if the Recepeint fails to pay supplier for goods & Services or both supplied to him within 180 days is required to Reverse the same with interest

Thanks Pankaj ji.

it means the sundry creditors, who reflected in the taxpayer's balance sheet, the taxpayer has be reverse the ITC or pay the equal amount of ITC along with interest and penalty as applicable.

Yes,  The taxpayer has to reverse the ITC or pay the amount equal to ITC as GST along with interest and penalty, as applicable.

PENALTY DO NOT ATTRACTS, YES INTEREST IS APPLICABLE AS PER SECTION 50 OF CGST ACT

Thanks Rawat ji,

but if department point out, then the penalty is also applicable.

yes in that case section 73,74 get invoked