What would happen to the ITC taken by the registered person if he has not paid the consideration along with tax within 180 days from the date of issue of invoice?

In case if a recipient fails to complete the payment to the supplier within 180 days from the date of invoice issuance, then the amount of ITC availed will have to be reversed and added to the outward tax liability of the recipient.

As per Rule 37(1) of the CGST Rules 2017, any ITC availed in such condition should be reversed by furnishing the details in FORM GSTR-2 for the month followed by the 180 days period.

But FORM GSTR-2 now stands suspended.

Thus, taxpayers can furnish the details of the ITC to be reversed in the GSTR-3B return in the month following the 180 days period from the date of issuance of invoice.