Invoice shown under B2C by Supplier, but Recipient takes ITC

ITC / Input 1011 views 3 replies

dheeraj gagad

198 Points Joined October 2011

I have query regarding ITC.

Issue : Recipient (Retailer) has taken ITC of purchases from Suppler (Wholesaler), but failed to give GSTN, however supplier shows the said sale transaction under B2C category in GSTR 1. Later Recipient gives GSTN

As per one of the section, if suppler does not rectify within 3 months from date of invoice, then recipient has to reverse ITC claimed and pay it to the Government along with interest @ 18%.

Concern : 1. How shall the recipient
recover the tax from supplier, if supplier doesn't rectify the error even after submitting GSTN
2. If the supplier doesn't rectify the error within 3 months from date of invoice, the recipient has to pay ITC claimed along with interest, does this result double payment of tax to government.

Replies (3)

g mahesh Mundra

Business and tax consultant

3299 Points Joined September 2017

he can recover from him by stopping payment if he is regular taxpayer . case 2 he has to reverse the itc only and has to pay only interest in cash so there is no double payment of tax

dheeraj gagad

198 Points Joined October 2011

But how do I reverse the ITC so claimed for FY 17-18, in respect of which invoices are uploaded in B2C category by Supplier and Audit under IT act is completed and Books of accounts are closed.

Further how do we calculate interest???

Kindly assist