My query is in relation to availability of input tax credit to the receiver of the goods, if supplier do not file Gstr1 and do not pay taxes even if the payment to supplier has been done in full.
what would be the treatment in Gst annual return of the receiver as the amount may not be reflected in Gstr2A.
Ideally credit cannot be taken. But there was a press issue dated 18.10.2018 where in para 4 it was clarified that furnishing of outward supply by supplier doesn't impact the ability of taxpayer to take ITC on self-assessment basis in consonance with section 16 of the CGST Act.
In my opinion, ITC should not be denied to the tax payer just because the corresponding supplier has not paid tax and furnished his GSTR 1. It is for the dept to check his compliance and this view has been confirmed by court in many VAT cases.
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