M/s. ABC Ltd
of Delhi has taken consulting services from XYZ advisors Pvt. Ltd in Faridabad for
the month of August, value of such service is of Rs. 10000. Company issued
invoice for the said services on 5th September.
Integrated tax of amount Rs 1800 is charged on the invoice. XYZ
advisors Pvt. Ltd showed services in the detail of outward supply in the return
for the month of September. M/s ABC also claimed Input tax credit
of Rs 1800 on the said services in the month of September on the basis on
invoice. Whereas recipient does not
make payment of value of such supply and tax due on such supply up to 4th
consequence the company has to face for non-payment of value and tax due on
services under the provision of GST.
can take credit on input on the basis of invoice. As per second proviso to section
16(2), he is required to pay the consideration along with tax within 180 days
from date of issue of invoice. This condition is not applicable where tax is
payable on reverse charge basis.where a recipient fails to pay to the supplier of goods
or services, the amount towards the value of supply along with tax payable
thereon within a period of 180 days from the date of issue of invoice by the
supplier, an amount equal to the input tax credit availed by the recipient shall
be added to his output tax liability, along with interest thereon, in the manner
as may be prescribed.
(Reversal of input tax credit in the case of non-payment of consideration
prescribed that such recipient shall furnish the details of
such supply and the amount of ITC availed of in GSTR-2
in the month following the period of 180 days from the date of issue of
invoice and the amount of ITC shall be added in output tax liability in that
month. Such person
liable to pay interest as per section 50 on his own from the
date of availing credit till the date when the amount
added to the OTL is paid.
Interest shall be levied @ specified by Govt for the period of September
till the paid tax shown in OTL.