As per Rule 37 of CGST Act, ITC claim will be reversed if supplier is not being paid within 180 days.
Is the said rule also applicable for Transitional Credit (Cenvat, VAT at-hand as on 01.07.17) ?
Please reply with clarification.
Kallol Sarkar (Accountant) (188 Points)
05 June 2023As per Rule 37 of CGST Act, ITC claim will be reversed if supplier is not being paid within 180 days.
Is the said rule also applicable for Transitional Credit (Cenvat, VAT at-hand as on 01.07.17) ?
Please reply with clarification.
B Durga Prasad
(Student)
(175 Points)
Replied 06 June 2023
No, Rule 37 of the CGST Act, which states that Input Tax Credit (ITC) claim will be reversed if the supplier is not paid within 180 days, is not applicable to Transitional Credit (Cenvat and VAT at-hand as on 01.07.17). The provisions of Rule 37 specifically apply to the regular ITC claimed on eligible inputs, input services, and capital goods under GST. Transitional Credit has its own set of rules and conditions, as specified in the transitional provisions of the GST law.
To learn more about Input Tax Credit Reversal under GST click here
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