Rule 37A. Reversal of input tax credit in the case of non-payment of tax by the supplier and re-availment thereof.
The recipient of input tax credit needs to ensure that supplier has furnished the FORM GSTR-3B for the tax period in respect of such invoice or debit note, the details of which have been furnished by the supplier in the statement of outward supplies in FORM GSTR-1 on the basis of which ITC has been claimed by the recipient.
If the return in FORM GSTR-3B for the tax period corresponding to the said statement of outward supplies has not been furnished by such supplier till the 30th day of September following the end of the financial year in which the input tax credit in respect of such invoice or debit note has been availed, the said amount of input tax credit shall be reversed by the recipient while furnishing the FORM GSTR-3B on or before the 30th day of November following the end of such financial year.
failing to reverse such ITC would lead to interest payable by the recipient under section 50.
Provided further that where the said supplier subsequently furnishes the return in FORM GSTR-3B for the said tax period, the receipient may re-avail the amount of such credit in the return in FORM GSTR-3B for a tax period thereafter.