Service Provider's GSTIN Cancelled as Suo Moto action for receiving further services

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This query is : Resolved

Quick Summary

If your service provider's GSTIN has been cancelled, you can generally continue to receive services from them. However, you will not be able to claim Input Tax Credit (ITC) on these services. The provider should issue a Bill of Supply instead of a GST invoice, especially if their turnover falls below the GST threshold.

phanikumar kuricheti

phanikumar kuricheti (Querist)

10 October 2023 Dear Sir,

We GST registered service receiver. But, We observed in Oct-2023 the concern service provider got GSTIN cancelled as Suo Moto in Mar-2023.So, Now can we continue the business from him ?and can we received the services in future? Kindly suggest us.

Regards
K.V.Phani Kumar
Manager-Accounts

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 October 2023 Now you can continue the business from him and can receive the services in future.
No problem but you can't claim ITC.
Ask him not to issue GST invoice as his registration is cancelled.

Message likes : 1 times

CA ASHOK DAHIYA

CA ASHOK DAHIYA (Expert)

10 October 2023 As his registration no got cancelled, he can't issue tax invoice. therefore you can not avail any input tax credit on services received. In case he doesn't cover under GST, say his t/o is less than 20 lacs, you can continue to receive service. He will issue Bill of Supply in that case.

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