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Yes. Nothing stops you from reversing earlier. Reversing as soon as you know you will not pay limits interest exposure.
GST
Reversing ITC before 180 days voluntarily
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Rule 37, CGST Rules 2017; Sec 50(3), CGST Act 2017
Analysis
If a supplier relationship has ended with a dispute and payment is unlikely, reverse the ITC in Table 4(B)(2) now. If you later pay, you can reclaim. This is cleaner than waiting and paying interest. Note the reason in your working.
Close
- Identify invoices you do not plan to pay.
- Reverse the ITC in Table 4(B)(2).
- Record the reason.
- Reclaim if payment is later made.
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