Query Regarding GST Impact on Sundry Creditors written off
GST Impact on Sundry Creditors written off:
Is there any GST Impact on Sundry Creditors written off on 31.03.2018, in respect of purchases booked before 01.07.2017.
As per rule 37 of the CGST Rules 2017, if you do not make payment to the supplier within 180 days from the date of invoices and you claim the Input tax credit on the said invoices then you need to reverse the Input tax credit if you not reverse the Input Tax Credit within 180 days then you need to pay 18% interest over the Input tax credit claimed by you.
However if you written off the credit then you need to reverse the Input tax credit for the said invoices..
Should you require any further clarification feel free to reach me.