This is going to change the way, you do business……
*BIG NEWS : GST Reversal*… if not paid within 6 months
for example : If you have purchased any input Goods or any services on 1st July 2017, its 180 days for payment is already over on 27th December 2017. >>>> 1st July 2019… then due on 27th Dec 2019.
And so, if you have not paid for it, then, get ready to reverse its ITC (Modvat)
For source, legal extracts, exact dates , see the link given above.
This is as per Rule 2 of GST Input Tax Credit Rules,2017
*_Effects on Businesses_*
*Effect on you as a Supplier* : Good news. Warn your customer immediately.
Tell him, Mr X, now GST is also with me. Better pay me immediately, else….. you are going to lose money too. …………
Maybe… you might get a good collection this month.
*Effect on you as a Customer* : Immediately ask your accounts dept, to see all the vendor bills of July 2017. And get them paid.
Or be ready to reverse the Modvat(called Input tax credit or ITC, now) with interest.