Service provider does not issue tax invoice to buyer

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A buyer is seeking clarification on their rights when landlords, despite being GST registered, refuse to issue tax invoices and instead request rent as per the agreement without GST. The buyer is concerned about potential future issues with the GST department and whether paying without an invoice is legally permissible. The advice suggests that the buyer will not face responsibility, but obtaining a declaration from the landlord is not a valid solution and could lead to violations of GST rules.

kathir

kathir (Querist)
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06 November 2020 Dear Expert,

We have received rental service from various land lords. Most of the landlord has registered under GST but they not ready to issue invoice to us and asking rent amount based on agreement. as per agreement we did not mentioned any points regarding GST. in this of situation what is our rights ( Buyer ) and clarify the followings.
01. Shall we pay rent without GST based on agreement.?
02. Or its must to collect invoice and make the payment with GST ( Any specific rules please share the same ).
03. We have received declaration from LL " We are registered under GST but not issue any tax invoice and pay as per agreement without GST ,in future we would not claim any GST from you". Is this declaration is valid or GST we will face any issue from GST department in future.
04. Because we know he is registered under GST but not issue tax invoice to us means is it violation of Law.? if we are not intimated to GST department will create any issues to us.?

Please clarify the same.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 November 2020 1 No obtain tax invoice and pay GST in addition to agreement rent.
2, 3 and 4 Obtaining such a certificate will also land you in violation GST rules.

kathir

kathir (Querist)
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06 November 2020 Thanks sir. Could you please provide the rules / section regarding this. It would help us to get tax invoice from landlord.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 November 2020 Under the GST regime, an “invoice” or “tax invoice” means the tax invoice referred to in section 31 of the CGST Act, 2017. This section mandates issuance of invoice or a bill of supply for every supply of goods or services.

kathir

kathir (Querist)
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07 November 2020 Dear Sir, i am agreed the point & Section. but all the rules prescribed on supplier/ service providers ( Issue tax invoice , penalty , etc ) only , but i am doubted is there any rules prescribed to buyer/service receiver.? is this buyer/service receiver liability to collect tax invoice from seller/service receiver.? if yes, please provide the rule / section.
if the buyer not aware is the service provider registered under GST and we paid rent amount on monthly basis without GST based on agreement hence LL not filled GSTR01 hence same not reflected our GSTR2A also. in this kind of case what is our responsibility.? we will face any issue from tax department in future.? if yes, please provide the relevant rule / section.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 November 2020 You will not face any responsibility. No such rules.

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