Goofs sold to a party

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This query is : Resolved

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A business sold goods to a party in 2017-18 and 2018-19 but has now received a GST notice requesting the reversal of Input Tax Credit (ITC). The GST authorities are incorrectly treating the business's sales as purchases. The advice given is to reply to the notice, providing copies of sales invoices and stating that no ITC was availed, thus no reversal is necessary. Clarification is also needed regarding transporter bills, as the goods were sold 'ex-delivery' (delivery at seller's premises).

ARUN GUPTA

ARUN GUPTA (Querist)
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11 August 2021 We had sold Goods to a party in 2017-18 and 2018- 2019 . Now we received mail from GST asking us to reverse Itc as we have purchased from them. GST authorities are treating my sales as purchases. What should I do now? Please advise?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 August 2021 Reply to the notice, as it's only sales to the party for which GST has been paid. Enclose invoice copy. We have not availed any ITC, so there is no need for reversal.

ARUN GUPTA

ARUN GUPTA (Querist)
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12 August 2021 GST Authority is asking for transporters bill. We have sold ex delivery Goods to them. How can we give them transporters bill?

ARUN GUPTA

ARUN GUPTA (Querist)
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12 August 2021 GST Authority is asking for transporters bill. We have sold ex delivery Goods to them. How can we give them transporters bill?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 August 2021 Reply as it's sold on delivery.

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