Answer

1. F

   Facts

   If ITC was not reversed when 180 days passed, reverse it now with interest. If you have since paid, you can reclaim it, so the net effect is often only interest.

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.
   • Sec 50(3), CGST Act 2017Interest is payable on ITC wrongly availed and utilised, from the date of utilisation till reversal, at the notified rate (18 percent a year).
   • Sec 16(2), third proviso, CGST Act 2017The recipient is entitled to avail the credit again once payment of value and tax is made to the supplier.
3. A

   Analysis

   Pay the reversal through GSTR-3B or DRC-03 with interest for the period of utilisation. Then reclaim in the period of payment, which may already have passed; reclaim in the current return with proof. For a ₹50,000 credit utilised for 4 months, interest is about ₹3,000. Fix the process to avoid repeat.

4. C

   Conclusion

   1. 1List invoices paid after 180 days without reversal.
   2. 2Reverse ITC through GSTR-3B or DRC-03 with interest.
   3. 3Reclaim ITC for those already paid.
   4. 4Set up monthly ageing checks.

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