Answer

1. F

   Facts

   Under the second proviso to Sec 16(2) and Rule 37, if you do not pay the supplier the value and tax within 180 days of the invoice date, the credit must be reversed and added to output tax with interest. You can reclaim it once you pay.

2. P

   Provisions and law

   • Sec 16(2), CGST Act 2017ITC needs a tax invoice, receipt of goods or services, tax paid by the supplier and a filed return
   • Rule 37, CGST Rules 2017ITC to be reversed with interest if the supplier is not paid within 180 days
   • Sec 50(3), CGST Act 2017Interest on ITC wrongly availed and utilised
3. A

   Analysis

   On an unpaid invoice of ₹5,00,000 plus ₹90,000 tax dated 1 March, credit of ₹90,000 must be reversed in the return after 28 August if still unpaid. When you pay in October, reclaim it in Table 4(D)(1). An ageing report of creditors each month makes this easy.

4. C

   Conclusion

   1. 1Run a creditor ageing report each month
   2. 2Identify invoices crossing 180 days unpaid
   3. 3Reverse their credit in GSTR-3B with interest where due
   4. 4Reclaim the credit when payment is made

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