Rule 37A was introduced by Notification No. 26/2022 – Central Tax Dated 26th Dec, 2022
It requires reversal of Input Tax Credit in the case of non-payment of tax / non filling GSTR 3B by the supplier by 30th September of next year. In such cases, the buyer needs to reverse ITC on or before 30th November of next year.
After that, once the supplier files GSTR-3B, only then can the buyer reclaim and avail that ITC.
What You Need to Do:
1️⃣ Check your GSTR-2B for the reversal amount.
2️⃣ Ensure you reverse the ITC before the deadline of November 30, 2023, in Table 4(B)(2) of GSTR-3B to avoid interest and penalties.