Input Tax Credit

Reversal of input tax credit in the case of non-payment of tax by the supplier and re-availment thereof

Rule 37A of the CGST Rules

Chapter 5 – Input Tax Credit Text as on 2026-09-05 Source CBIC

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Amendment history

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Where the supplier did not pay the tax by 30 September following the year of the invoice, the recipient must reverse that credit by 30 November of that year, with interest if he does not; it can be re-availed once the supplier actually pays.

What this means in practice

The parts that actually decide cases — the things a practitioner checks first.

The annual reversal check: if the supplier has not filed GSTR-3B for the period by 30 September following the year of the invoice, the recipient must reverse the credit by 30 November of that year.

Re-availment is allowed in any return once the supplier files – there is no time bar on the re-availment.

Build the check into the October compliance calendar; a reversal made after 30 November carries interest.

The exact words of the law

1,579 characters, unedited

Reproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.

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Rule 37A 1 [Rule 37A. Reversal of input tax credit in the case of non-payment of tax by the supplier and re-availment thereof.- Where input tax credit has been availed by a registered person in the return in FORM GSTR-3B for a tax period in respect of such invoice or debit note, the details of which have been furnished by the supplier in the statement of outward supplies in FORM GSTR-1 1 [, as amended in FORM GSTR-1A if any,] or using the invoice furnishing facility, but the return in FORM GSTR-3B for the tax period corresponding to the said statement of outward supplies has not been furnished by such supplier till the 30th day of September following the end of financial year in which the input tax credit in respect of such invoice or debit note has been availed, the said amount of input tax credit shall be reversed by the said registered person, while furnishing a return in FORM GSTR-3B on or before the 30th day of November following the end of such financial year: Provided that where the said amount of input tax credit is not reversed by the registered person in a return in FORM GSTR-3B on or before the 30th day of November following the end of such financial year during which such input tax credit has been availed, such amount shall be payable by the said person along with interest thereon under section 50 . Provided further that where the said supplier subsequently furnishes the return in FORM GSTR-3B for the said tax period, the said registered person may re-avail the amount of such credit in the return in FORM GSTR-3B for a tax period thereafter.]

What changed, and when

The amendment trail, newest first — because the version that applies to your case depends on the period.

2024-07-10 · Inserted

12/2024-CTdated

Inserted vide Notification No. 12/2024 – CT dated 10.07.2024.

Read this with

A provision rarely works alone. These are the ones it points to.

Section 50

Where this comes from

Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.

rule 37Areversal of input tax credit in the case of non-payment of tax by the supplier and re-availment thereof

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