Accounts Manager
21 Points
Joined October 2016
If Receiver of Service paid only the taxable amount to the supplier and not paid the tax, should supplier liable to pay tax?
Receiver said to furnish the return after payment of tax, and then they will credit the tax amount to the supplier.
But, took ITC in their accounts, and file all respective returns along with annual return.
After such incident they paid the the avail ITC Amount on GST DRC 03 as the supplier not shows the tax amount in GSTR 1, but shows the taxable amount.
They file DRC 03 along with 24% interest on their GST No., and the interest amount deducted from the supplier on their further service.
Now GST Department levy the tax on supplier, but the evidence shows that receiver paid the Tax amount along with interest.
Does it correct to levy and collect the tax amount to the supplier, as the supplier not received any tax amount and also lose the interest amount form the receiver ?
Please suggest.