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Payment not made within 180 days

Jatin (Accountant) (3479 Points)

16 October 2018

How to show reverse ITC in GSTR 3B return due to payment not made within 180 days.

How to calculate Interest for reversal of ITC

If ITC of Rs. 1000 reversed on 18.01.2018, Interest on reversal is 18% p.a. from date of invoice ? ?

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8 Replies

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 16 October 2018

Show the reversal in gstr 3b itc reversal
Interest shall be paid from the date of availing of such credit till reversal.

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Jatin (Accountant) (3479 Points)
Replied 16 October 2018

which column of GSTR 3B

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 16 October 2018

In itc block there are two rows for reversal. One specifies rule 42/43 and one is other (misc reversals). Choose the other one.

VIKAS SAINI (1163 Points)
Replied 16 October 2018

Zafer sir. Agree with your comment. But if itc balance maintain in records then no need to pay the interest

Jatin (Accountant) (3479 Points)
Replied 16 October 2018

Thanks Mr. Zafer

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Jaymin Mistry (56 Points)
Replied 16 October 2018

Interest on reversal of ITC for payment after 180 days was waived in 28th GST Meeting on 21.07.2018.not sure if notification for the same is published yet.