As per proviso to Section 16 (2) of the CGST Act, where the recipient fails to pay the supplier of goods or services or both, the amount due towards the value of supply along with tax payable there on, within a period of 180 days from the date of issue of invoice by the supplier,
– an amount equal to the Input Tax Credit (ITC) availed by the recipient shall be added to his output tax liability, along with interest there on.
This aspect shall be taken care while filing GST returns for the month of December as the Invoices issued before 4th July 2017 should have been cleared by now.
Hence before filing your GST returns for the month of December 2017, you have to thoroughly go through your bill wise outstanding details of your supplier’s accounts.
If any invoice as above is still outstanding, while calculating the Eligible Input Tax Credit for the month of Dec 2017 , you have to reverse the Input tax credit in respect of the invoices that are outstanding for 180 days or more.
Apart from the above, Interest @ 18% p.a. has to be paid on such input tax credit reversed from the date of availing the ITC till the date of reversal.
Also note that the ITC is reversible even though the payment is made partly.