INPUT TAX CREDIT RELATED

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accountant
93 Points Posted on 01 November 2020
Hi
our Client has purchase bill on which he had paid 18K gst

he comes to notice that supplier has not filled the gstr3b returns from 1819 to till date, but they are filling GSTR 1 on regular basis. In his 2A input is also showing.

my question is, is our client have to take worry in this. he can see his input
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On 01 November 2020 at 22:42 Report
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If your client has paid GST but the supplier hasn't filed GSTR-3B returns, it's a cause for concern. While the input tax credit may appear in GSTR-2A, Section 16(2)(c) of the CGST Act requires the supplier to deposit the collected tax. The burden of proof for claiming ITC lies with the recipient (Section 155). If the supplier fails to file GSTR-3B, they haven't paid the liability, potentially making the recipient liable to reverse the credit, unless the recipient has proof of payment and the supplier has deposited the tax.

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3924 Points Posted on 01 November 2020
As per section 16(2)(3) of the CGST act 2017 , Supplier must pay GST collected from you to Govt account to avail Input Tax credit .
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On 01 November 2020 at 23:06
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GST Practitioner
55067 Points Posted on 01 November 2020
Yes , this is big flaw in Return Filing system in GST & it cannot be flawless unless the matching system the core base of GST is implemented (GSTr 1,2,3) .

Yes ofcourse your client should worry because in term of Section 155 of CGSt act the burden of proving ITC claimed is on the Recepeint. so if the Supplier is not filing his GSTR 3b , that means he is not depositing the tax collected . so ultimately the Recepeint who is liable to deposit with Interest.
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On 01 November 2020 at 23:37
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CA
1258 Points Posted on 06 November 2020

If supplier is not filing GSTR-3B means he is not paying the liability which he is collecting from your client. In this case if your client has paid to the supplier and he has a proof of it then there is no need to worry

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On 06 November 2020 at 15:35
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70 Points Posted on 07 November 2020
Yes, if you have the invoice with you,no need to worry.
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On 07 November 2020 at 23:37
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GST Practitioner
55067 Points Posted on 09 November 2020

as per section 16 of CGST Act , one of the condition is to claim ITC is Supplier has deposited the tax & if he is not Filing GSTR 3B that means he has not deposited the tax , hence need to be reversed.

Note : Kindly refer the rule 36(4) of CGST act also.

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On 09 November 2020 at 00:15

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