Excess input tax credit

This query is : Resolved

Soulvent Francis (Querist)
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24 January 2024 Sir,
We having proper purchase bills and proper check post seals, but the client not uploaded in gst in the year FY 2017-18.Some clients are closed their GST Number and now we got a scruitny, in our second sitting GST Oficer demands delaration letter from purchasers.but the purchase already closed their GST AND they dont having proper records.Kindly guid me to solve this issue
Regards
Soulvent Francis
Mob: 6282625281

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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07 July 2024 In your situation, where some of your clients have closed their GST registrations and do not have proper records, and you are facing scrutiny from the GST officer, here are steps you can consider to resolve the issue:

1. **Documentation from Your End:**
- Ensure you have all your purchase bills and check post seals properly organized and available for scrutiny. These documents will serve as evidence of your transactions.

2. **Declaration Letter from Purchasers:**
- Since your purchasers have closed their GST registrations, it might not be feasible to obtain a declaration letter directly from them. However, you can:
- Provide copies of the purchase bills showing GST details and other relevant information.
- Explain the circumstances to the GST officer that the purchasers have closed their GST registrations and are not accessible for providing a declaration letter.

3. **Alternative Evidence:**
- If possible, provide any other documentation that supports your claim, such as correspondence with the purchasers acknowledging the transactions or any other business records that validate the transactions.

4. **Discussion with GST Officer:**
- Have a detailed discussion with the GST officer handling your case. Explain the situation clearly and provide all available documentation.
- Request guidance on alternative methods or documents that could be accepted as proof in the absence of a declaration letter from closed GST registrations.

5. **Consultation with a Tax Professional:**
- If the issue remains unresolved or if you need expert advice on handling the scrutiny, consider consulting with a tax professional or GST advisor. They can provide specific guidance based on your case details and help navigate the scrutiny process effectively.

By presenting comprehensive documentation and engaging proactively with the GST officer, you can demonstrate transparency and compliance, even in situations where your clients have closed their GST registrations. This approach will help in resolving the scrutiny with minimal complications.