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Input Available on Date of Receipt of Goods

But payment should be made within 180 days from date of Invoice

Example 3

Goods Sold by A to B on 15 May from shop.

Invoice issued on that date.

B took the goods to his factory on 16 May

Payment not yet made

On what date is Input Available?

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Input is available on 15 May i.e Date of Receipt of Goods

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Can Input be taken even if Payment not made

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Yes, Input Tax Credit can be taken even if payment not made

However, Credit on Same has to be Reversed if Payment not made within 180 Days from Date of Invoice

(As per Rule 2 of GST Input Tax Credit Rules,2017)

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In Which Month Computation Reversal of Input to be shown

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Reversal is to be shown in

Month immediately following the period of one hundred and eighty days from the date of issue of invoice.

Date of Invoice=15 May

180 days from Date of Invoice=11 Nov

Following Month=December

It is to be shown in FORM GSTR-2 of December Month

As per Rule 2 of GST Input Tax Credit Rules,2017

Reversal of input tax credit in case of non-payment of consideration

  1. A registered person, who has availed of input tax credit on any inward supply of goods or services or both, but fails to pay to the supplier thereof the value of such supply along with the tax payable thereon within the time limit specified in the second proviso to sub-section (2) of section 16, shall furnish the details of such supply and the amount of input tax credit availed of in FORM GSTR-2 for the month immediately following the period of one hundred and eighty days from the date of issue of invoice.
  2. The amount of input tax credit referred to in sub-rule (1) shall be added to the output tax liability of the registered person for the month in which the details are furnished.
  3. The registered person shall be liable to pay interest at the rate notified under sub-section (1) of section 50 for the period starting from the date of availing credit on such supplies till the date when the amount added to the output tax liability, as mentioned in sub-rule (2), is paid.

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  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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