How to claim itc by a gst defaulter who has not paid Late Fee & Penalty

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This query is : Resolved

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A GST-registered dealer who hasn't paid late fees and penalties, due to income constraints, is blocked from filing GSTR3B and subsequently claiming Input Tax Credit (ITC). This prevents them from filing subsequent returns, impacting their ability to claim ITC on purchases from registered sellers. While GSTR3B is the only recognised method, there's a hope for an amnesty scheme to resolve such issues.

Narayanan Mummidi

Narayanan Mummidi (Querist)
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20 May 2021 ONE OF THE GST REGISTERED DEALER WHO HAS NOT PAID LATE FEE& PENALTY DUE TO LESSER INCOME THAN THE LATE FEE & PENALTY CLAIMED BY GST DEPT. Because of non payment of Penalty & late fee the GST portal has a mechanism where it prohibits the dealer who is a defaulter of Late fee & penalty. Hence the dealer is unable to file GSTR3B in subsequent months. The dealer has purchased all itmes from the registered GST Seller. What is the option to claim ITC by the GST regd person other than filing GSTR3B

Ganeshbabu K

Ganeshbabu K (Expert)
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20 May 2021 There is no other option other than GSTR3B Wait till 28-05-2021, GST council meeting, lakhs of GST regd suspended recently, there is expectation for amnesty scheme for giving relaxation of latefee, penalty to enable traders to restore regd

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Narayanan Mummidi

Narayanan Mummidi (Querist)
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11 June 2021 Thank you Sir.The Gst efiling online system does not allow the dealer to file subsequent monthly GSR B returns unless the previous month GSTRB returns are filed. The aggravates the problem for small & newly registered dealers who are not able to claim input against their Sales. Is this legally valid on the part of GST Department . There should be a seperate mechanism to collect LateFee & Penalty & allow the GST Regd dealers normally. Experts please do reply on this issue

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