Sir, As per Section 16(2) & Rule 37, input tax credit is to be added to output tax liability if payment is not made within 180 days. our doubt is 1.Supplier him self is allowing credit period of 200 days and we are paying accordingly, whether this section is applicable to us or not. 2. This section is applicable for imports and hi-sea sales or not.

Reply- Second Proviso to Section 16(2) :- “Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed :

Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon.”

Thus even if supplier allow 200 days credit you have to reverse the ITC if payment is not made within 180 days however when you make the payment to supplier

Second proviso to Sec. 16(2) clearly excludes supplies on which tax is payable on reverse charge basis from its applicability. Hence ITC is not required to be reversed even if payment is not made within 180 days against import  and High Sea sale