Time Limit for re claim of GST Input Tax Credit reversed due to non payment

By | February 16, 2019
(Last Updated On: March 16, 2019)

Time Limit for reclaim of ITC

I have procured goods in July 2017 and payment not made to the vendor but claimed Input Tax Credit (ITC) against the bill. As per the act ITC can be claimed only the payment should be made within 180 days else ITC should be reversed with interest. As per the CGST ACT I have reversed now, but the payment will be made only in March 2019.

Will I be eligible to take credit on these bills in march 2019 ?

Answer : yes , you will be eligible  to claim ITC as no time limit for re-credit


Section 16(2) of CGST Act 2017


Providedfurther that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, 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, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed:

Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon.

Section 16(4) of CGST Act 2017

(4)A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier.

Rule 37 of CGST Rules 2017 : Reversal of input tax credit in the case of non-payment of consideration


(4) The time limit specified in sub-section (4) of section 16 shall not apply to a claim for re-availing of any credit, in accordance with the provisions of the Act or the provisions of this Chapter, that had been reversed earlier.

Refer also  GST Input Tax Credit : Free Study Material

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