Answer

1. F

   Facts

   The 180 days are counted from the invoice date. Advances paid before the invoice reduce the unpaid amount on that invoice.

2. P

   Provisions and law

   • Rule 37, CGST Rules 2017If the supplier is not paid within 180 days of the invoice, the proportionate ITC is shown as reversed in the GSTR-3B for the tax period immediately after the 180 days, with interest under Sec 50; it is re-availed once payment is made. Not applicable to reverse charge supplies, and to deemed supplies without consideration.
3. A

   Analysis

   If you paid a ₹50,000 advance and the invoice is ₹1,18,000, only ₹68,000 remains to be paid within 180 days of the invoice. Adjust advances against invoices in your books promptly. Unadjusted advances make the ageing report show wrong overdue amounts.

4. C

   Conclusion

   1. 1Adjust advances against invoices when received.
   2. 2Count 180 days from the invoice date.
   3. 3Track only the balance as unpaid.
   4. 4Review unadjusted advances monthly.

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