GST input taken but return not file by supplier
This query is : Resolved
08 October 2020
We have taken gst input on the basis of bills and immediately we had paid to supplier.
Now we find that suppliy has not filed the return yet.
So can we go ahead with this?
Can we file the gstr9 on the basis of bill input.
Now we find that suppliy has not filed the return yet.
So can we go ahead with this?
Can we file the gstr9 on the basis of bill input.
09 October 2020
yes you can file the same, many people are doing the same
09 October 2020
Thanks but at the end of department will send the notice who will be responsible to deposit?
13 October 2020
Can anyone help me on this matter?
14 October 2020
its a matter of litigation that was going on in past, But these days usually you cant take input of more than 110% of whatever is coming in your 2A,
As the return is pending , confirm from the party what he will do in a written letter document. and if he is ready to file the return, you can take the input.
If not, ask for the claim from the said party.
As the return is pending , confirm from the party what he will do in a written letter document. and if he is ready to file the return, you can take the input.
If not, ask for the claim from the said party.
14 October 2020
Thanks sir.
We have not taken input more than 110% in fy 2018-19.
Are we safe?
However we are continuously chasing to our vendors for depositing the same.
Pls confirm.
We have not taken input more than 110% in fy 2018-19.
Are we safe?
However we are continuously chasing to our vendors for depositing the same.
Pls confirm.
26 July 2024
If you've claimed GST Input Tax Credit (ITC) on the basis of invoices received from a supplier, but the supplier has not filed their GST return (GSTR-1) or deposited the GST collected, you may face some challenges. Here’s a detailed breakdown of your situation and the relevant GST provisions:
### 1. **Eligibility to Claim ITC**
Under GST law, you can claim ITC on the basis of valid invoices, provided the following conditions are met:
- The supplier has issued a valid GST invoice.
- You have received the goods or services.
- You have paid the supplier and the tax has been paid to the government by the supplier.
However, if the supplier has not filed their GST return, your ITC may be at risk. This is because the GST system allows ITC claims to be matched with the supplier's returns.
### 2. **Impact of Non-Filing by Supplier**
The GST law provides that ITC will only be available if the supplier has filed their GST returns and deposited the tax with the government. This is to prevent fraudulent claims and ensure proper tax compliance. If the supplier does not file their return:
- **Mismatch and Reversal:** Your ITC claim might get flagged for mismatch and could be reversed in the future. The tax authorities may disallow the ITC if the supplier does not comply with their GST obligations.
### 3. **Reporting in GSTR-9**
When filing your annual return (GSTR-9), you need to report ITC claimed based on the invoices you have received. However, if the supplier has not filed their return, it may show up in the system as a mismatch. The following should be noted:
- **ITC Reporting:** Report the ITC claimed in GSTR-9 as per the invoices you have received and paid for. You should reconcile this with the data available on the GST portal.
- **Reversal of ITC:** If any ITC is reversed due to non-filing by the supplier, it will be adjusted in the subsequent months.
### 4. **Ensuring Compliance**
To mitigate issues arising from non-filing by suppliers:
- **Chase Your Supplier:** Continue to follow up with your supplier to ensure they file their returns and deposit the GST. Keep records of all communications and efforts made.
- **Check Your ITC Ledger:** Regularly monitor your ITC ledger and reconcile it with the supplier’s returns.
- **Maintain Proper Documentation:** Ensure that you have all necessary documentation proving that you have received the goods, paid the supplier, and that the tax has been collected from you.
### 5. **Safety in Claiming ITC**
You mentioned that you have not claimed more than 110% of your ITC for the financial year 2018-19. This is in line with the compliance requirement to avoid any ITC claims beyond the eligible limit.
### 6. **Compliance Measures**
- **Reverse ITC if Required:** If it turns out that the supplier does not comply and your ITC is disallowed, you may need to reverse the ITC in the relevant period.
- **File Correct Returns:** Make sure to file your GST returns accurately, reflecting any reversals or adjustments as necessary.
### Summary
- You can claim ITC based on valid invoices, but if the supplier has not filed their returns, you may face challenges with the GST system.
- You should report the ITC in your GSTR-9 as per the invoices, but be prepared for potential reversals if the supplier fails to comply.
- Continue to chase your supplier and maintain proper records of all communications and efforts made.
It’s always good to consult with a GST professional or tax advisor to ensure compliance and get personalized advice based on your specific situation.
### 1. **Eligibility to Claim ITC**
Under GST law, you can claim ITC on the basis of valid invoices, provided the following conditions are met:
- The supplier has issued a valid GST invoice.
- You have received the goods or services.
- You have paid the supplier and the tax has been paid to the government by the supplier.
However, if the supplier has not filed their GST return, your ITC may be at risk. This is because the GST system allows ITC claims to be matched with the supplier's returns.
### 2. **Impact of Non-Filing by Supplier**
The GST law provides that ITC will only be available if the supplier has filed their GST returns and deposited the tax with the government. This is to prevent fraudulent claims and ensure proper tax compliance. If the supplier does not file their return:
- **Mismatch and Reversal:** Your ITC claim might get flagged for mismatch and could be reversed in the future. The tax authorities may disallow the ITC if the supplier does not comply with their GST obligations.
### 3. **Reporting in GSTR-9**
When filing your annual return (GSTR-9), you need to report ITC claimed based on the invoices you have received. However, if the supplier has not filed their return, it may show up in the system as a mismatch. The following should be noted:
- **ITC Reporting:** Report the ITC claimed in GSTR-9 as per the invoices you have received and paid for. You should reconcile this with the data available on the GST portal.
- **Reversal of ITC:** If any ITC is reversed due to non-filing by the supplier, it will be adjusted in the subsequent months.
### 4. **Ensuring Compliance**
To mitigate issues arising from non-filing by suppliers:
- **Chase Your Supplier:** Continue to follow up with your supplier to ensure they file their returns and deposit the GST. Keep records of all communications and efforts made.
- **Check Your ITC Ledger:** Regularly monitor your ITC ledger and reconcile it with the supplier’s returns.
- **Maintain Proper Documentation:** Ensure that you have all necessary documentation proving that you have received the goods, paid the supplier, and that the tax has been collected from you.
### 5. **Safety in Claiming ITC**
You mentioned that you have not claimed more than 110% of your ITC for the financial year 2018-19. This is in line with the compliance requirement to avoid any ITC claims beyond the eligible limit.
### 6. **Compliance Measures**
- **Reverse ITC if Required:** If it turns out that the supplier does not comply and your ITC is disallowed, you may need to reverse the ITC in the relevant period.
- **File Correct Returns:** Make sure to file your GST returns accurately, reflecting any reversals or adjustments as necessary.
### Summary
- You can claim ITC based on valid invoices, but if the supplier has not filed their returns, you may face challenges with the GST system.
- You should report the ITC in your GSTR-9 as per the invoices, but be prepared for potential reversals if the supplier fails to comply.
- Continue to chase your supplier and maintain proper records of all communications and efforts made.
It’s always good to consult with a GST professional or tax advisor to ensure compliance and get personalized advice based on your specific situation.
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