22 January 2023
We have made gst purchase on credit from a party. Now the party is asking to make payment in other firms name which is not gst registered. Can we make payment in other firms name? Will there be any problem in claiming ITC IN future? Please clarify?
22 January 2023
When the other firm is not registered under GST, how can you pay GST to it? When GST not paid, no question of ITC. You are required to pay the payment who issues TAX INVOICE as per rules & regulations...
23 January 2023
If original party has issued Tax invoice, he is liable to report GST received in GST return, As such you can get its ITC. In that situation the payment should be made to original party. You cannot get ITC benefit when you get bill of exchange from any another party, if original party cancel the tax invoice, when payment is not received from you to the bill issuer.
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