11 Points
Joined November 2018
There may be various press releases available on this topic; however, in practice, the department often relies heavily on GSTR-2A/GSTR-2B auto-populated statements to determine eligible ITC. If an invoice is not reported by the supplier in their GSTR-1 return, the department may consider it ineligible and drag recipient into litigation.
Merely due to non-compliance by the supplier, the department may question why the recipient failed to ensure their own compliance, suggesting that the recipient should have followed up with the supplier. Generally, to avoid this, recepient makes the payment only after the invoice gets reported by the supplier in their GSTR-1 Return. In such cases, the department may require the recipient to furnish supporting documents, such as copies of invoices, e-way bills, proof of payment, return acknowledgments, and ledger confirmations from the supplier.