Question : What is the effect of non-payment of consideration in respect of taxable supplies received by the recipient?

Answer: If the recipient fails to pay to the supplier the amount towards the value of supply along with
tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by
the supplier, the amount of input tax credit availed proportionate to the amount of consideration not paid would be added to his output tax liability along with interest thereon. The ITC so reversed can be reclaimed by the recipient after payment of consideration alongwith tax payable there on subsequently. This provision is not applicable in respect of deemed supplies made without consideration in terms of Schedule I to the CGST Act, 2017.

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