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All QuestionsCategory: GST CompliancesQuery Regarding GST Impact on Sundry Creditors written off
Profile photo of Ashish GargAshish Garg asked 7 months ago

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.

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1 Answers
Profile photo of Nikhil ChopraNikhil Chopra answered 7 months ago

Hello Ashish,
 
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.
Nikhil