Gst input tax credit

ITC / Input 113 views 2 replies

CA RAAMESH YERRAMSETTI

EMPLOYEE

21 Points Joined October 2015

A. Can i setoff / pay my GST payable from .......... in below situations

1. not ITC as per GST credit ledger but i have received invoice from supplier and payment is already made . supplier not filed GSTR 1 ,

2. Can i setoff my GST payable with the GST in the invoice available (GST not paid or filed by the supplier )

B. i have availed credit earlier based on the invoice given by supplier, but supplier not filed the return, after few months due to certain reasons supplier registration was cancelled. (amount was already paid to supplier)

kindly give solutions for the above

Replies (2)

prasad Nilugal

GST Practitioner & Accounts

14927 Points Joined March 2014

As per section section 16(2) of the CGST act ,you only can avail ITC , if you fulfill following condition

1) You Must have valid Tax Invoice issued by supplier with correct GSTN .

2) You must received Goods or service

3) Supplier must pay Tax to Govt account collected form you .

4) Recipient must file return .

please refer section 16 of the CGST act .

Siddaraju S Krishnappa

GST Expert

190 Points Joined November 2013

As per Section 16 (2)

ITC Can be claimed in the basis of

1. Possession of Tax invoices or Debit note

2. On receipt of goods or services

3. Tax has been paid by the supplier

4. He has filed Returns

Practical difficulties

1. Supplier not filed return or filed under different GSTIN of purchaser;

2. Tax he collected but not paid to government;

We can not keep tract of those and GSTR 2A has not been completed with all the compliances

And hence,

On receipt of Goods or services and possession of tax bill claim credit

And inform the officer that you have informed your client to make payment & file their return;

As per law section 16(2) is applicable – but as per practical difficulties it is not possible

Make sure one thing that you have made payment to your supplier and to whom the payment is not made inform them to file return first and the payment will be released after that

As per your question

Take credit and set off against your liability as of now under practical difficulties