Compliance Pack
ITC reversal for unpaid suppliers after 180 days, Rule 37
What this means, checked by a CA
If you take GST credit on a bill but do not pay your supplier within 180 days, the law makes you give that credit back with interest, and lets you take it again once you pay. We age your unpaid bills, work out the exact reversal and interest, show it in the right GSTR-3B tables, and track it so you re-claim it the month you pay.
₹1,999
a month, + 18% GST
- Delivered in 3 working days after the payables ageing and ledgers are shared
- Due: In GSTR-3B for the tax period right after the 180th day from the invoice date; re-claim in the GSTR-3B of the period in which the supplier is paid
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 7 items
Purchase register with invoice dates
Starts each 180-day clock
Supplier ledgers and payment proofs
Shows paid and unpaid amounts
Payables ageing as on month end
Finds bills past 180 days
GSTR-3B Table 4 for past periods
Shows ITC actually taken
Electronic credit ledger statement
Decides if credit was utilised
ECRRS reversal and re-claim statementOptional
Tracks reversal balance to re-claim
Credit notes and disputed bills listOptional
Unpaid for a reason, still counts
DiscussionWhat we discuss · 6 items
Which invoices are unpaid, fully or partly, beyond 180 days?
Only the unpaid share is reversed
Was ITC actually taken on those bills in GSTR-3B?
No ITC taken means nothing to reverse
Did your credit ledger balance fall below the reversed amount?
Decides whether interest is payable
Are any bills under reverse charge or free supplies to related persons?
RCM excluded; Schedule I treated as paid
Have you since paid suppliers for earlier reversed bills?
Re-claim now, no time bar
Has any supplier not filed GSTR-3B for the year?
Separate Rule 37A reversal check
FormsForms we file · 5 items
Age the payables and list invoices crossing 180 days in the month
Unpaid share = unpaid amount ÷ invoice value; reversal = ITC on the invoice × unpaid share
Where: Internal. Due: Before the month's GSTR-3B
Compute interest where the credit was utilised
Reversed ITC × 18 percent a year × days from utilisation date to reversal ÷ 365 (Rule 88B(3))
Where: Internal. Due: Before the month's GSTR-3B
Report the reversal in GSTR-3B Table 4(B)(2) and pay interest in Table 5.1
Where: https://www.gst.gov.in. Due: GSTR-3B for the period right after 180 days (20th of the next month for monthly filers)
When the supplier is paid, re-claim in GSTR-3B Table 4(A)(5) and show it in Table 4(D)(1)
Where: https://www.gst.gov.in. Due: GSTR-3B of the month of payment
Check the ECRRS balance so re-claims never exceed reversals
Where: https://www.gst.gov.in. Due: Each month
DeliverablesWhat you get · 3 items
Rule 37 reversal and interest working
When: Before GSTR-3B
Filed GSTR-3B showing reversal
When: By the GSTR-3B due date
Unpaid supplier tracker with re-claim dates
When: Updated monthly
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