Reg:-Repicent had not done payment with in 180 days

Dear sir,

kindly tell us , our Recipient had not released our payment with in 180 days?
so we can do it??
Replies (4)
Quick Summary
If a recipient fails to pay a supplier within 180 days of an invoice date, they are liable under GST Act 2017 to reverse their Input Tax Credit (ITC) and pay 18% interest. The supplier can issue a credit note to reduce their output tax liability. The recipient can only reclaim the ITC once the full payment is made, though the interest paid becomes a non-recoverable cost.

As per gst act 2017, if recipient do not made the payment with in 180 days than he is liable to pay interest @ 18%, and reverse the ITC claim.

if supplier pay the tax amount on above transaction than he can issue the credit note to recipient. Reduce the output tax amount from next month output liabilities

for the recipient - he has to reverse ITC and pay interest 

you may ask for the payments from the recipient .  

Thanks sir
As per the Second Proviso to Section 16(2) of the CGST Act 2017, if the Recipient fails to pay the consideration to the Supplier within a period of 180 days from the date of issuing invoice by the supplier, then the Recipient needs to reverse the ITC availed along with interest @ 18% and add to his Output Tax Liability.

Once he pays the entire consideration to the Supplier, then only he will be eligible to reclaim the ITC. But the Interest portion becomes his COST.

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