Cheating by Regular Dealer...

This query is : Resolved

Rajesh

(Querist)
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10 September 2020 I request all experts for your valuable advice.
1) Supplier of goods is Regular Dealer (RD) and receiver of goods is a Composition Dealer (CD) under GST.
2) RD issues kachcha bills (cash memo/challan like bills). It is not a Tax Invoice, but a bill made on a paper on which his name is properly printed.
3) He does not separately charge GST; but it is included in the final amount. However, he promises to issue a Tax Invoice only after payment is made against all outstanding kachcha bills.
4) RD does not issue Tax Invoice to CD even after clearing outstanding bills.
5) In GSTR4A, CD finds Tax Invoices worth only Rs.80 thousand out of total Rs.3 lakhs of kachcha bills of RD.
6) Though, CD is ineligible for input tax credit, RD is cheating CD as well as Government.
What could be done in such cases? Please advise.

Lekhraj sood

Lekhraj sood (Expert)
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10 September 2020 If you are sure that he is a regular dealer registered under GST then he has to issue tax invoice and show GST separately on the invoice.
What you should do is to amend your PO on him to show as basic plus GST and mandatory to issue tax invoice.Secondly you can raise the grievance on the GST portal and mention the these facts .The Govt.will take care.
If that also does not work.Provide me the details.

Rajesh

Rajesh

(Querist)
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12 September 2020 Thank You for your reply!

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