The 6 month period time limit is from the due date of payment rather than initial invoice date. So if contractually the payment is due only after 6 months then the liability to reverse the input should fall upon non-payment for a period of 6 months commencing from the said due date. If one has issued PDC which is due to be cleared on such due dates, the intention to pay is already established provided such due dates are contractual established as well...in my view. The clarification issue has touched upon a scenario where approval process is involved rather than PDC payments. Issue of PDC in a way confirms approval and intention.

In case, where parties redesigned contractually payment term of the goods supplied 8 months ago where Invoice date May 01,2019 with 30 days payment term. On October 30, revised payment terms 120 days contractually agreed further hence actual 6 months from due date already expired but revised term are still valid with intention to pay. In this case, should reversal/adjustment need to pass or not?

I think FTA would assess these on case to case basis after evaluating the nature of supply and rationale/circumstances based on which restructuring of payment term has taken place. Note that intention of the Law is to prevent taxable persons from taking undue advantage of supplier invoices by not paying the due consideration (VAT) to the supplier. This is a good point for which clarification can be sought from the FTA.

If we assume that consideration (VAT Amount Only) paid immediately or within 6 months and principal still outstanding. In such a case still VAT need to Reverse or Not ? Recipient had paid VAT amount already within defined period hence VAT compliance has been made in overall & broad scenario.

in such a case reversal would not be required

Thanks Sajith.