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Claim ITC if supplier has not paid his tax under GST

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Antony

Manager

63 Points Posted on 27 March 2021

We are registered under GST. We have made a purchase from a GST registered seller providing our GISTIN. The purchase was made in May 2020. We couldn't claim ITC as the purchase bill is not reflected in Form 2A. Can we raise a complaint against the seller for not depositing tax?

Thanking you

Antony Kaitharath

Replies (3)

Quick Summary

If you're unable to claim Input Tax Credit (ITC) because your supplier hasn't paid their GST or filed their returns, you may have options. While ITC is typically linked to supplier filings in GSTR-2A, you might have a case if you have the invoice and can prove an error. It's advisable to contact your supplier to remind them to pay the tax and file their returns. Alternatively, you could request a refund of the tax amount charged or adjust it against future bills if they remain your supplier.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 28 March 2021

You should show As per section 16 of GST Act, if your supplier has not filed its return and show as sales to you, GST credit will not be available to you. However, if you have invoices and can prove that credit is not reflected in 2A due to some other error, then you have a case.
The GSTR-2A is based on returns filed by your suppliers. Absence of an invoice there means that the supplier has not included that invoice in his return, which in turn most likely means that he has not paid the tax. Contact your suppliers and remind them to pay the GST invoiced to you and to file their returns showing this.

Vivek

Student

22 Points Posted on 28 March 2021

Another simple solution is that you should ask your supplier to return your tax amount that he charged in that particular bills.

if that person is still your supplier adjust the amount on which you could not claim ITC against the latest bill.