When you must reverse input tax credit

Sometimes credit you claimed has to be reversed in a later return.

Common triggers

• You did not pay the supplier within 180 days of the invoice
• Inputs used for exempt supplies or personal use (proportionate reversal)
• Goods written off, lost or given as free samples

Reversal is reported in GSTR-3B, often with interest. If you later pay the supplier, you can reclaim the reversed credit.