By Karun Reji, Chartered Accountant, BI-Outsource. General information, not tax or legal advice. Rules change: check the current position before you act.
Short answer: credit for invoices of a financial year must be claimed by 30 November of the next year or the date you file the annual return, whichever is earlier. Separately, if you do not pay a supplier within 180 days of the invoice date, you must reverse the related credit and can re-claim it once you pay.
Section 16(4): the deadline to claim
| Invoice in financial year | Last date to claim (if annual return not filed earlier) |
|---|---|
| 2024-25 | 30 November 2025 |
| 2025-26 | 30 November 2026 |
| 2026-27 | 30 November 2027 |
After this date, credit for that year is lost even if the supplier files later.
Rule 37: the 180-day payment rule
- If you have not paid the supplier the value plus tax within 180 days of the invoice date, reverse the credit in GSTR-3B.
- Interest applies on the reversed amount for the period it was enjoyed.
- When you pay, the credit can be re-claimed.
- Some supplies, such as those under reverse charge, are outside this rule.
Monthly routine
- Reconcile purchases with GSTR-2B before every GSTR-3B.
- List invoices missing from 2B and follow up with suppliers.
- Run a creditors ageing for invoices over 150 days and plan payment or reversal.
- In October each year, review all of last year's unclaimed credit before the 30 November cut-off.
Need help? We track credit and supplier ageing monthly. See GST reconciliation services.
Frequently asked questions
Yes. If the supplier files after the deadline, the credit for that year is lost.
Yes, interest is generally payable on credit that was availed and later reversed for non-payment.
Yes, once you pay the value and tax, the reversed credit can be re-claimed.
Credit on imports is based on the bill of entry; the same section 16(4) time limit applies.
