hi ,I have a query regarding itc reversal if payment is not made to supplier under 180 day,
let suppose I purchase goods of 100 rs and gst rate is 5% and availed credit in that particular month and paid the 50 % amount ie 52.5 in same month but unable to pay the rest 50 % within 180 day. My question is how much I need to reverse itc
8 Replies
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 01 June 2019
Strictly according to law whole amount itc to be reversed.
Manish Yadav
(18 Points)
Replied 01 June 2019
As per rule 37 you have to reverse ITC on the UNPAID amount to the creditor if not paid within 180 days.
So as per your query you have to reverse only 50% of the ITC claimed
So as per your query you have to reverse only 50% of the ITC claimed
Adv.Akash sharma
(Advoate)
(32 Points)
Replied 01 June 2019
You Have to Reverse only unpaid Balance input taken Gst amount only.
Sachin Pal
(75 Points)
Replied 01 June 2019
let suppose a recipient paid the taxable value amount not the gst amount ,so as per rule he can avail itc on proportionall basis but actually he is not paid the tax amount to supplier,
I think he needs to reverse the 100 percent itc
Please give your views on it.
I think he needs to reverse the 100 percent itc
Please give your views on it.
Adv.Akash sharma
(Advoate)
(32 Points)
Replied 01 June 2019
As per rule 37 you have to reverse ITC on the UNPAID amount to the creditor if not paid within 180 days.
CA Haritha Komma
(Chartered Accountant)
(1147 Points)
Replied 01 June 2019
Payment to vendor cannot be bifurcated into payment of gross and GST. Whatever is paid may be treated as the amount inclusive of GST.
ITC can be reversed to the extent unpaid to vendor i.e., 50%.
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