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What happens if the recipient fails to discharge the consideration within 180 days of invoice date? Will he be eligible to reclaim the input tax credit after payment of consideration?

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What happens if the recipient fails to discharge the consideration within 180 days of invoice date? Will he be eligible to reclaim the input tax credit after payment of consideration?

Expert Answer

Answered 05 Aug 2022

2175 views

If the recipient of goods or service or both fails to make payment of consideration within 180 days of invoice date, he shall be required to add the Input Tax Credit (availed against such invoice) to his output tax liability and pay the same along with interest (computed @ 18% p.a. from the date of issue of invoice). However, after discharging due consideration, the recipient shall be eligible to reclaim the due input tax credit.

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