December 15, 2022

Under the current GST Law, a registered GST dealer, is a recipient of goods or service and fails to pay consideration to the supplier (whether fully or partly) on such supply, the GST Input Tax claimed on such transaction should be reversed within 180 days from the date of issue of the invoice.

However, the reversed ITC can be reclaimed by the GST dealer once the said consideration is paid to the supplier of goods or service at a later date.