Answer

1. F

   Facts

   Under Sec 16(2) second proviso and Rule 37, if you do not pay the supplier the invoice value including tax within 180 days of the invoice date, you must reverse the ITC claimed on the unpaid portion, with interest.

2. P

   Provisions and law

   • Sec 16(2), second proviso, CGST Act 2017If the recipient does not pay the supplier the value plus tax within 180 days of the invoice date, an amount equal to the ITC availed is paid back with interest, in the manner prescribed in Rule 37.
   • 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.
3. A

   Analysis

   Take an invoice dated 1 April for ₹1,18,000 with ₹18,000 GST, on which you claimed ITC in April. If it is still unpaid on 28 September, the 180 days have passed and the ₹18,000 is reversed in the September or October GSTR-3B, depending on the date. The credit is not lost forever; once you pay, you can claim it again. This rule pushes businesses to pay suppliers on time.

4. C

   Conclusion

   1. 1List all purchase invoices with ITC claimed and their dates.
   2. 2Find those unpaid after 180 days.
   3. 3Reverse the ITC on the unpaid part in the next GSTR-3B.
   4. 4Pay interest under Sec 50 where applicable.
   5. 5Re-avail the ITC after payment.

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