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supplier filing gstr 1 and not gstr 3b

CGM Iron Syndicate (44 Points)

24 February 2018

if supplier is filing GSTR 1 and not GSTR 3B, then would the ITC of buyer be at risk

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4 Replies

sujith kumar dasa (banglore) (1496 Points)
Replied 24 February 2018

Yes, if the supplier is not filing GSTR-3B it means he is not paying tax. If he doesn't pay tax, you will not get input credit

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RAJA P M ("Do the Right Thing...!!!") (127977 Points)
Replied 24 February 2018

No more Risk...

Buyer can avail the ITC benefits if Supplier file his GSTR 1.

GSTR 3B is not main return it's just a Interim return. So, Don't be consider about GSTR 3B...

CGM Iron Syndicate (44 Points)
Replied 24 February 2018

Doubt coming in the mind is

Supplier has created a liability for himself by filing GSTR 1
In the worst case if Supplier doesn't file 3B and doesn't pay tax, then Tax Officer would recover tax from Supplier or nullify ITC of buyers

sujith kumar dasa (banglore) (1496 Points)
Replied 24 February 2018

section 16(2)(c) input credit is eligible if
subject to the provisions of section 41, the tax charged in respect of such
supply has been actually paid to the Government, either in cash or through utilisation
of input tax credit admissible in respect of the said supply; and