Rule 37
Reversal of input tax credit in the case of non-payment of consideration
GST
Input Tax Credit
Rule 37 of Central Goods and Services Tax Rules, 2017
37. Reversal of input tax credit in the case of non-payment of consideration.-
2[(1) A registered person, who has availed of input tax credit on any inward supply of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, but fails to pay to the supplier thereof, the amount towards the value of such supply 4[, whether wholly or partly,] along with the tax payable thereon, within the time limit specified in the second proviso to sub-section (2) of section 16, shall pay 5[or reverse] an amount equal to the input tax credit availe
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second proviso to sub-section (2) of section 16.
(2) Where the said registered person subsequently makes the payment of the amount towards the value of such supply along with tax payable thereon to the supplier thereof, he shall be entitled to re-avail the input tax credit referred to in sub-rule (1).]
(3) 3[****]
(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.
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NOTES:-
1.
Inserted vide Notification No. 26/2018 – Central Tax dated 13-06-2018
2.
Substituted vide Notification No. 19/2022-Central Tax dated
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pecified in Schedule I of the said Act shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16.
1[Provided further that the value of supplies on account of any amount added in accordance with the provisions of clause (b) of sub-section (2) of section 15 shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16]
(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.
Omitted vide Notification No. 19/2022-Central Tax dated 28-09-2022 w.e.f. 01-10-2022 before it was read as,
“(3)
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