Answer

1. F

   Facts

   For supplies without consideration covered by Schedule I, such as between related or distinct persons, the value is deemed paid for Rule 37.

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 16(2), CGST Act 2017ITC is allowed only with a tax invoice, receipt of goods or services, tax actually paid to the Government by the supplier, and the recipient's own return filed.
3. A

   Analysis

   Since there is no payment due, no reversal is needed after 180 days. The supplier still pays GST on the open market or other prescribed value, and you can claim ITC. Keep the documents showing it is a Schedule I supply. Payments of tax portion, if agreed, should still be recorded.

4. C

   Conclusion

   1. 1Identify Schedule I supplies received.
   2. 2Keep the agreement or note showing no consideration.
   3. 3Exclude them from Rule 37 ageing.
   4. 4Claim ITC as per the invoice.

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