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SUPPLIER NOT SUBMITTING GST

13 February 2021

I HAVE SOME QUESTION REGARDING INPUT GST CLAIM

I HAVE PURCHASED A MACHINERY AND CLAIMED INPUT GST OF 9 LAKHS ON IT (AUGUST 2020) NOW AFTER FEW MONTHS I CAME TO KNOW THAT MY SUPPLIER HAS NOT SUBMITTED AND PAID GST TO GOVERNMENT (ALSO NOT REFLECTING IN MY 2A).

NOW WHERE I CAN FILE A COMPLAINT AGAINST HIM LEGALLY

PLEASE SUGGEST YOUR COMMENTS

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3 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5976 Points)
Replied 13 February 2021

There shall not be an automatic reversal of input tax credit at the recipient’s end where the invoice is uploaded but tax has not been paid by the supplier. In case of supplier failed to pay tax on the supply, recovery shall be first made from the supplier and in some exceptional circumstances like missing taxpayer, closure of business by the supplier or supplier not having adequate assets or in cases of input claimed by the recipient in an illegal way, etc.

Invoices not uploaded by the supplier

In the initial phase of six months, the recipient will have an option to avail ITC on self-declaration basis even on the invoices not uploaded by the supplier by 10th of the next month by using the facility of availing ITC on missing invoices.

The input claimed on the missing invoices by the recipient shall be filed by the seller within next two tax periods from the input claimed by the recipient. If the same is not filed by the supplier, the input claimed by the recipient shall be reversed with interest and penalty.

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5976 Points)
Replied 13 February 2021

A recipient can report to the officials of missing invoices at an invoice level (that is when a supplier has not uploaded an invoice in T+2 period).

CA Altamush Zafar (GST Consultant) (15976 Points)
Replied 13 February 2021

You can give a notice through advocate at the most. It is always better to have a contract for large amounts so that terms are set and can be legally enforced.