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

321 views 4 replies
Dear sir,

kindly tell us , our Recipient had not released our payment with in 180 days?
so we can do it??
Replies (4)
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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details