Answer

1. F

   Facts

   If you do not pay the supplier the value and tax within 180 days of the invoice date, the ITC must be reversed with interest. It can be reclaimed once you pay. Paying through banking channels also strengthens your genuineness defence.

2. P

   Provisions and law

   • 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
   • Rule 37, CGST Rules 2017ITC reversed for non-payment within 180 days is added back in the return; it can be reclaimed on payment
3. A

   Analysis

   Example: invoice dated 1 March for Rs 5 lakh plus Rs 90,000 GST is unpaid on 28 August. Reverse Rs 90,000 in GSTR-3B for August, with interest at 18 percent if the credit was used. When you pay in October, reclaim it. Payment to a third party instead of the supplier, or in cash, weakens your position if the supplier is later questioned.

4. C

   Conclusion

   1. 1Run an ageing report of unpaid purchase invoices each month
   2. 2Reverse ITC on invoices crossing 180 days in GSTR-3B
   3. 3Pay interest where the credit was used
   4. 4Reclaim ITC after payment and keep the bank proof

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