Answer

1. F

   Facts

   An invoice-wise payables ageing report, run monthly, shows invoices nearing or crossing 180 days.

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 35(1), CGST Act 2017Every registered person must keep true and correct accounts at the principal place of business, including production, stock, supplies, ITC and tax paid.
3. A

   Analysis

   Most accounting software can produce ageing by invoice date. Filter invoices above 150 days and plan payments for them. Those above 180 days unpaid go into the Rule 37 reversal for the month. Keep the monthly report with your GSTR-3B working.

4. C

   Conclusion

   1. 1Run payables ageing by invoice date monthly.
   2. 2Flag invoices above 150 days for payment.
   3. 3List those above 180 days for reversal.
   4. 4Attach the report to your GSTR-3B file.

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