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Claim ITC if supplier has not paid his tax under GST

Antony (Manager) (61 Points)

27 March 2021

We are registered under GST. We have made a purchase from a GST registered seller providing our GISTIN. The purchase was made in May 2020. We couldn't claim ITC as the purchase bill is not reflected in Form 2A. Can we raise a complaint against the seller for not depositing tax?

Thanking you

Antony Kaitharath

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3 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 28 March 2021

You should show As per section 16 of GST Act, if your supplier has not filed its return and show as sales to you, GST credit will not be available to you. However, if you have invoices and can prove that credit is not reflected in 2A due to some other error, then you have a case.
The GSTR-2A is based on returns filed by your suppliers. Absence of an invoice there means that the supplier has not included that invoice in his return, which in turn most likely means that he has not paid the tax. Contact your suppliers and remind them to pay the GST invoiced to you and to file their returns showing this.

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Vivek (Student) (22 Points)
Replied 28 March 2021

Another simple solution is that you should ask your supplier to return your tax amount that he charged in that particular bills.

if that person is still your supplier adjust the amount on which you could not claim ITC against the latest bill.