Procedure for reversal of input tax credit in case of non-payment of consideration :
A registered person, who has availed of input tax credit on any inward supply of goods or services or both, but fails to pay to the supplier thereof the value of such supply along with the tax payable thereon within the time limit specified in the second proviso to section 16(2), shall furnish the details of such supply and the amount of input tax credit availed of in form GSTR-2 for the month immediately following the period of one hundred and eighty days from the date of issue of invoice – rule 2(1) of Input Tax Credit Rules.
The amount of input tax credit referred to in sub-rule 2(1) shall be added to the output tax liability of the registered person for the month in which the details are furnished – rule 2(2) of Input Tax Credit Rules.
The registered person shall be liable to pay interest at the rate notified under section 50(1) for the period starting from the date of availing credit on such supplies till the date when the amount added to the output tax liability, as mentioned in rule 2(2), is paid – rule 2(3) of Input Tax Credit Rules.