What GST returns and rules does GSTBuddies support?

GSTBuddies audits GSTR-1, 2A, 2B, 3B, 9 and 9C. Checks include Rule 37 (180-day ITC reversal), Rule 42/43 common-credit reversal advisories, Rule 86B, Section 16(4) ITC time-bar, Section 50 interest, Section 47 late fees, reverse-charge (RCM) checks, the annual Table 8 ITC reconciliation and the three-way GSTR-1 vs 3B vs 9 reconciliation. Every figure is cited to the CGST Act and Rules. Section 17(5) blocked credits depend on what each expense was, which a GST return does not carry, so that review stays with your books.

What file formats can I upload?

PDF, Excel, JSON and ZIP. Upload GSTR PDFs from the GST Portal, Excel ledgers from Tally, Busy or any party ledger (.xlsx/.xls), JSON exports for GSTR-2A/2B/3B/9/9C, or the portal's ZIP downloads — GSTBuddies extracts and classifies them automatically.

Is GSTBuddies free to try?

Yes. Sign up to get free credits every month, no credit card required, and run GST compliance checks to see the results before you buy.

Yes. GSTBuddies uses AES-256 encryption on AWS infrastructure and never shares your data. Uploaded files are processed and deleted after 7 days.

What happens if I pay the supplier only partly?

The ITC reversal under Rule 37 is proportionate to the unpaid portion of the invoice value and tax.

Is the Rule 37 ITC reversal permanent?

No. The reversed ITC can be re-availed once you pay the supplier the value plus tax; the Section 16(4) time limit does not apply to such re-availment.

Rule 37, CGST Rules · Section 16(2) & Section 50, CGST Act 2017

Rule 37: the 180-day ITC reversal, explained

If you don't pay your supplier within 180 days of the invoice date, the Input Tax Credit (ITC) you claimed must be reversed — with interest. Here's exactly how it works, with the calculation.

What Rule 37 requires

Under the second proviso to Section 16(2) of the CGST Act read with Rule 37 of the CGST Rules, a registered person who has availed ITC on an inward supply must pay the supplier the value of the supply along with the tax within 180 days from the date of the invoice. If they don't, an amount equal to the ITC availed must be added to their output tax liability.

The trigger: 180 days elapse from the invoice date and the invoice (value + tax) remains unpaid, wholly or partly. The reversal is proportionate to the unpaid amount.

Interest on the reversal

Since the amendment effective 1 October 2022 (Notification 19/2022-CT), the amount is added to output tax liability and interest under Section 50 applies at 18% per annum, calculated from the date the ITC was availed until the date it is reversed/paid.

Worked example

Item	Amount
Invoice taxable value	₹1,00,000
GST @ 18% (ITC claimed)	₹18,000
Days unpaid from invoice date	200 (> 180)
ITC to reverse	₹18,000
Interest @ 18% p.a. (≈ days availed)	≈ ₹1,775

Re-availing the credit

The reversal is not permanent. Once you actually pay the supplier (value + tax), you can re-avail the reversed ITC — the time limit under Section 16(4) does not apply to credit re-availed after such payment.

How GSTBuddies automates Rule 37

Upload your purchase ledger (Tally, Busy or any party ledger) and GSTBuddies scans every invoice, flags those crossing 180 days, computes the exact ITC to reverse and the Section 50 interest, and produces a citation-backed working paper you can export. See the full compliance suite or start with 8 free credits every month.

FAQ

From which date are the 180 days counted?

From the date of the invoice, not the date of receipt or accounting.

What if I pay the supplier partly?

The reversal is proportionate to the unpaid portion of the invoice value and tax.

Do I lose the credit permanently?

No. You can re-avail it after you pay the supplier the value plus tax.