Input tax credit to be reversed in the case consideration has not been paid under GST

Rule-37 of CGST Rules 2017

37. Rever­sal of input tax cred­it in the case of non-pay­ment of consideration.-

(1) A reg­is­tered per­son, who has availed of input tax cred­it on any inward sup­ply of goods or ser­vices or both, but fails to pay to the sup­pli­er there­of, the val­ue of such sup­ply along with the tax payable there­on, with­in the time lim­it spec­i­fied in the sec­ond pro­vi­so to  sub-section

(2) of sec­tion 16, shall fur­nish the details of such sup­ply, the amount of val­ue not paid and the amount of input tax cred­it availed of pro­por­tion­ate to such amount not paid to the sup­pli­er in FORM GSTR‑2 for the month imme­di­ate­ly fol­low­ing the peri­od of one hun­dred and eighty days from the date of the issue of the invoice:

Pro­vid­ed that the val­ue of sup­plies made with­out con­sid­er­a­tion as spec­i­fied in Sched­ule I of the said Act shall be deemed to have been paid for the pur­pos­es of the sec­ond pro­vi­so to sub- sec­tion (2) of sec­tion 16.

• The amount of input tax cred­it referred to in sub-rule (1) shall be added to the out­put tax lia­bil­i­ty of the reg­is­tered per­son for the month in which the details are
• The reg­is­tered per­son shall be liable to pay inter­est at the rate noti­fied under sub-section

(1) of sec­tion 50 for the peri­od start­ing from the date of avail­ing cred­it on such sup­plies till the date when the amount added to the out­put tax lia­bil­i­ty, as men­tioned in sub-rule (2), is paid.

 

(4) The time lim­it spec­i­fied in sub-sec­tion (4) of sec­tion 16 shall not apply to a claim for re- avail­ing of any cred­it, in accor­dance with the pro­vi­sions of the Act or the pro­vi­sions of this Chap­ter, that had been reversed earlier.