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

CGST Rules, 2017  ·  Reversal of input tax credit in the case of non-payment of consideration

CGST Rules 5 Amendments

Quick Answer

Rule 37 of the CGST Rules, 2017 governs Reversal of input tax credit in the case of non-payment of consideration. It establishes the detailed procedural framework and compliance requirements necessary to implement the corresponding provisions of the CGST Act. Rule 37 CGST: Reversal of input tax credit in the case of non-payment of — eligibility, conditions, case laws and compliance impact under Indian tax law.

Case Laws 0
Views 0
Amendments 5
(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 1whether wholly or partly,3 along with the tax payable thereon, within the time limit specified in the second proviso to sub-section(2) of section 16, shall pay 1or reverse4 an amount equal to the input tax credit availed in respect of such supply 1, proportionate to the amount not paid to the supplier,5 along with interest payable thereon under section 50, while furnishing the return in FORM GSTR-3B for the tax period immediately following the period of one hundred and eighty days from the date of the issue of the invoice:1
Provided that the value of supplies made without consideration as specified 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 16.1
(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).1whether wholly or partly,3 along with the tax payable thereon, within the time limit specified in the second proviso to sub-section(2) of section 16, shall pay or reverse4 an amount equal to the input tax credit availed in respect of such supply , proportionate to the amount not paid to the supplier,5 along with interest payable thereon under section 50, while furnishing the return in FORM GSTR-3B for the tax period immediately following the period of one hundred and eighty days from the date of the issue of the invoice:
Provided that the value of supplies made without consideration as specified 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:
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)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)****2
(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. ​

No case laws found for this section yet.

Browse all case laws →

No FAQs available for this section yet.

No related notifications found for this section.

Browse all notifications →

Amendment History

12345Superscript numbers in the text mark amended passages — click them to jump here. Click "↑ view in text" to jump back.
1
2022↑ view in text

Substituted (w.e.f. 01.10.2022) vide Notification No. 19/2022 - CT dated 28.09.2022.

2
2022↑ view in text

Omitted ​ (w.e.f. 01.10.2022) vide Notification No. 19/2022 - CT dated 28.09.2022.

3
2022↑ view in text

Inserted (w.e.f. 01.10.2022) vide Notification No. 26/2022 -CT dated 26.12.2022.

4
2022↑ view in text

Inserted (w.e.f. 01.10.2022) vide Notification No. 26/2022 -CT dated 26.12.2022.

5
2022↑ view in text

Inserted (w.e.f. 01.10.2022) vide Notification No. 26/2022 -CT dated 26.12.2022.

Related Topic Guides

Input Tax Credit under GST (Sections 16 & 17) Input Tax Credit (ITC) under GST — Complete Legal Guide GST Returns Filing (GSTR-1, GSTR-3B & GSTR-9) GST Returns — GSTR-1, GSTR-3B & Annual Return (Sections 37, 39 & 44)

Get AI-Powered GST Insights

Live enforcement alerts, discussion forums, AI analysis & full case law search — free.

Open TaxIntelHub