Answer

1. F

   Facts

   There is no law against agreeing commercial terms that protect your credit. Many buyers release the GST portion only after the invoice appears in GSTR-2B. It must be agreed in writing in the purchase order.

2. P

   Provisions and law

   • Sec 16(2)(c), CGST Act 2017ITC is allowed only if the tax charged has actually been paid to the Government by the supplier
   • Sec 16(2), second proviso, CGST Act 2017If the supplier is not paid within 180 days of the invoice, ITC must be reversed with interest
3. A

   Analysis

   Example clause: GST charged will be paid after the invoice appears in the buyer's GSTR-2B; if ITC is denied due to the supplier's default, the supplier will refund the GST with interest. Remember the 180-day payment rule: if the GST portion stays unpaid beyond 180 days, you must reverse that credit. So keep the hold short and follow up quickly.

4. C

   Conclusion

   1. 1Add a GST compliance clause to purchase orders and contracts
   2. 2Release value promptly and GST after 2B confirmation
   3. 3Track invoices nearing 180 days unpaid
   4. 4Recover GST from the supplier if credit is denied for his default

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.