180-Day ITC Reversal Calculator

Haven't paid a supplier within 180 days? See how much input tax credit to reverse, in which return, and what interest applies.

Keeping the 180-day rule from costing you

  1. Age your payables by invoice date every month, and flag anything past 150 days.
  2. Part-payments reduce the reversal proportionately, so paying even some of the balance helps.
  3. If you reverse, record the reversal against the invoice so the re-claim is easy to trace.
  4. For credit that is blocked or never eligible, use the ITC eligibility checker instead. That credit is not re-claimable.

Frequently Asked Questions

What is the 180-day rule for ITC?

Under section 16(2) and Rule 37, a buyer who has not paid the supplier within 180 days of the invoice date must reverse the credit on the unpaid part. Paying later brings it back.

When must the ITC be reversed?

In the GSTR-3B for the tax period after the one in which the 180 days end. If day 180 falls in July, the reversal goes in the August return, due on 20 September.

Is interest payable on the reversal?

Only if the credit was already used to pay tax. Interest at 18% a year under section 50 runs from the date it was used until it is reversed.

Can the reversed ITC be claimed again?

Yes. Once you pay the supplier, re-claim the credit in Table 4(A)(5) of GSTR-3B. The section 16(4) time limit does not apply to a re-claim under Rule 37(4).

Which purchases are outside the 180-day rule?

Supplies taxed under reverse charge, supplies made without consideration under Schedule I, and amounts added to value under section 15(2)(b) that the supplier pays on your behalf.