TMI BlogVendor Payment delay behind 180 daysX X X X Extracts X X X X X X X X Extracts X X X X ..... We manufacture Pharmaceuticals Machinery. We have purchased one unit from our vendor on July-20 with payment terms of balance 10% after installation and successful trial at our Customers site. Please note that we have availed full GST credit in the month of July-20. But till date the installation is not done at our customer site and the 10% payment to vendor is still outstanding for more tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a year. As per GST provision payment to be made to vendor within 180 days from the date of supply. Under the above condition kindly advice us. - Reply By Rajagopalan Ranganathan - The Reply = Sir, Since you have already paid 90% of the invoice amount to the supplier, you can avail of the full ITC. Only when you did not pay the full amount of the Invoice then only you have to reverse the cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit taken along with interest. - Reply By KASTURI SETHI - The Reply = If 90 % amount (including GST) is paid, only 10 % tax amount (ITC) is to be reversed i.e. partial payment, reversal will be proportionate to the amount not paid. - Reply By Shilpi Jain - The Reply = Agree with kasturi sir. There is one more view in this regard.. since the 10% amount is not due for payment, it can be said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there is no failure to pay tax and hence reversal of credit is not required w.r..t the 10% amount as well. That means entire credit can be taken as of now. - Reply By Ganeshan Kalyani - The Reply = I agree with the views of Sri Kasturi Sir. Since 90% payment is made then ITC proportionate to 90% is only eligible. Sect 16 states that the value of supply along with tax payable thereon sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be paid to the supplier within 180 days. There is not word which states that amount due shall only be paid. So in my view 10% proportionate ITC needs reversal. - Reply By SURYAKANT MITHBAVKAR - The Reply = Thanks for your Valuable reply. Kindly note that we have paid to our vendor (90% of total value + 100% of GST Value) In such case kindly advise whether we have to reverse the proportio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nate amount. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalyani's reply is very much clear. Note the language of Section 16 value of supply along with tax payable thereon - Reply By Shilpi Jain - The Reply = Assumin you are taking a safe stand of not taking credit to the extent not paid to endorse, and say your invoice value is rs. 100 + 18 gst and if you have paid 113 I. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 85+18 to the supplier you can take credit to the extent of 113/118 18. You cannottake entire 18 as credit - Vendor Payment delay behind 180 days - Query Started By: - SURYAKANT MITHBAVKAR Dated:- 5-8-2021 Goods and Services Tax - GST - Got 7 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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