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Registered supplier of Service issue invoice without charging GST?

Mariappan (Student CA final new) (106 Points)

17 December 2020

One MY Supplier of Service (AMC Service Providers) Registered Person on July 2017- issue invoice without charging GST form Sep 2017- Mar 2019. Now Dec 2020 is gst department ask him for he is liable for Pay GST on that service provided in that period sep 2017- Mar 2019. Now the service provider ask me the gst for the relevant period . i am not ready to pay because if i paid i am eligible to claim ITC? how can we resolve the issue?

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6 Replies

APURBA CHATTERJEE (QUALIFIED CHARTERED ACCOUNTANT) (602 Points)
Replied 17 December 2020

It was his responsibility to charge GST on invoice.

1 Like

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Vinay Garg (Student cum businessman cum professional) (859 Points)
Replied 18 December 2020

You will not get any ITC because it is time barred under Sec.16(4)

1 Like

Deven Goyal (15 Points)
Replied 03 January 2021

What will the amount paid will be counted as taxable value or invoice value?

I am asking for calculating tax to be paid by supplier.

please answer with valid supporting section

CA. Heet Shah (Tax Consultant & Practitioner) (6178 Points)
Replied 05 January 2021

Originally posted by : Deven Goyal
	What will the amount paid will be counted as taxable value or invoice value?I am asking for calculating tax to be paid by supplier.please answer with valid supporting section

See supplier get liable to discharge GST liablity as per section 9 of CGST Act. However since he is not related party the consideration received by him would be considered as Gross value (incl of GST) Hence tax would be calculated using reverse calculations.

CA. Heet Shah (Tax Consultant & Practitioner) (6178 Points)
Replied 05 January 2021

@ Mari U are not eligible to claim ITC for period upto 19-20 so there is no way out for you to claim ITC and Hence there is no point in paying for ITC.

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CA. Heet Shah (Tax Consultant & Practitioner) (6178 Points)
Replied 05 January 2021

Originally posted by : Mariappan
	One MY Supplier of Service (AMC Service Providers) Registered Person on July 2017- issue invoice without charging GST form Sep 2017- Mar 2019. Now Dec 2020 is gst department ask him for he is liable for Pay GST on that service provided in that period sep 2017- Mar 2019. Now the service provider ask me the gst for the relevant period . i am not ready to pay because if i paid i am eligible to claim ITC? how can we resolve the issue?

Incase you pay the tax demand raised by Ur supplier u can only expense out the same in your books and claimed it as expense under Income tax .