Under GST law, if a recipient fails to pay their supplier within 180 days of the invoice date, they must reverse the input tax credit (ITC) availed for that supply and pay applicable interest. This provision, effective from October 1, 2022, requires the recipient to reverse or pay back the proportionate ITC amount linked to the unpaid supply in their GSTR-3B for the period following the 180-day deadline. Furthermore, recipients must pay interest on reversed ITC as per Section 50 of the CGST Act. To clarify ambiguity, the rules specify that only the unpaid portion of ITC should be reversed rather than the entire credit. If the payment to the supplier is completed later, the recipient may reclaim the ITC initially reversed. This rule emphasizes the need for effective cash flow management, accurate record-keeping, and monitoring of invoice payments to stay compliant and avoid penalties. Additional strategies include prioritizing payments to key suppliers and seeking professional guidance. The 180-day rule highlights the importance of timely supplier payments within GST compliance, helping businesses minimize financial risks and maintain a stable tax position. The GST law provides that where a recipient fails to pay to the supplier the amount towards the value of supply along with tax payable thereon within 180 days from the date of issue of invoice by the supplier, then such a recipient would be required to pay an amount equal to the input tax credit availed along with applicable interest. In this article, I shared a few points, relevant sections, and notifications for a better understanding of GST provisions.