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

By | July 13, 2017
(Last Updated On: July 5, 2018)

 Rule 37 CGST Rules 2017

Summary of Rule 37 CGST Rules 2017

( Rule 37 CGST Rules 2017 explains Reversal of input tax credit in the case of non-payment of consideration and is covered in Chapter V : Input Tax Credit   and Inserted by the Central Goods and Services Tax (Second Amendment) Rules, 2017, w.e.f. 1-7-2017 and Amended by Central Goods and Services Tax (Fifth Amendment) Rules, 2018,)

 Rule 37 CGST Rules 2017

Reversal of input tax credit in the case of non-payment of consideration

37. (1) A registered person, who has availed of input tax credit on any inward supply of goods or services or both, but fails to pay to the supplier thereof, the value of such supply along with the tax payable thereon, within the time limit specified in the second proviso to sub-section (2) of section 16, shall furnish the details of such supply, the amount of value not paid and the amount of input tax credit availed of proportionate to such amount not paid to the supplier in FORM GSTR-2 for the month 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.

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) The registered person shall be liable to pay interest at the rate notified under sub-section (1) of section 50 for the period starting from the date of availing credit on such supplies till the date when the amount added to the output tax liability, as mentioned in sub-rule (2), is paid.

(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.

 


Notes on Amendments in  Rule 37 CGST Rules 2017

  1. Inserted by the Central Goods and Services Tax (Fifth Amendment) Rules, 2018, w.e.f. 13-6-2018

 Rule 37 CGST Rules 2017

Also refer CBIC Website Click here 

Related Topic on GST

TopicClick Link
GST Acts Central GST Act and States GST Acts
GST RulesGST Rules
GST RatesGST Rates
GST NotificationsGST Act Notifications
GST CircularsGST Circulars
GST Press ReleaseGST Press Release
GST BooksBest Books on GST in India
GST CommentaryTopic wise Commentary on GST Act of India
GST You Tube ChannelTaxHeal You Tube Channel
GST Online CourseJoin GST online Course
GST HistoryGST History and Background Material

Rule 37 CGST Rules 2017 , Print  Rule 37 CGST Rules 2017, Rule 37 of CGST Rules 2017, Latest Rule 37 of CGST Rules 2017, updated Rule 37 of CGST Rules 2017,

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source
New Books Released on Tax , GST and law

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

  1. Pingback: Circular No 7/7/2017 GST : Reconciliation of GSTR 1 & 2 with GSTR 3B - Tax Heal

  2. Pingback: When you Can not Claim ITC under GST - Tax Heal

  3. Pingback: CGST Rules 2017 - Central Goods and Services Tax Rules 2017 : Chapter Wise & Rule wise - Tax Heal

  4. Pingback: No need to Reverse Input Tax Credit for non payment if recipient Supplied Material to Supplier - Tax Heal

  5. Pingback: Notification No 26/2018 Central Tax : CGST (Fifth Amendment) Rules 2018. - Tax Heal

Leave a Reply

Your email address will not be published. Required fields are marked *