Jamal Uddin Siddiqui (350 Points)
15 April 2019
prasad Nilugal
( GST Practitioner & Accounts )
(14300 Points)
Replied 15 April 2019
As per section 16 of the CGST act 2017 one has to fulfill following conditions for Input Tax credit
1) one must have valid Tax invoice with correct GSTN no .
2) one must received Goods or service
3) Supplier should pay Tax to the Govt account collected form you
4) He must file return .
Jamal Uddin Siddiqui
(350 Points)
Replied 15 April 2019
prasad Nilugal
( GST Practitioner & Accounts )
(14300 Points)
Replied 15 April 2019
You are correct Sir but this what act says , you have solve the issue with mutual understanding and flow up .
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 15 April 2019
Suppliers Mistake- Denial of ITC- Analysis of Sec 16.
Conditions to be fulfilled: a) Tax Invoice- You have b) Received goods/ services - You have received c) tax paid to supplier- d) Supplier has filed return- You do not know-
option 1- write to supplier that you are not going to pay him GST till he files GSTR1 + 3B ( he need to file his return also after paying the taxes) - if invoice not paid.
option 2 - If paid & supplier is a regular supplier raise a debit note for GST and in future do not pay GST part till he files.
Option 3 - if 1 & 2 not possible. Keep the evidence of correspondence with supplier, payment receipt + invoice and tell govt- not to expect the impossibility of becoming the assessment officer + recovery officer of all your vendors if there is a demand.
Dispute the denial if the revenue does deny at some time in future. IN the service tax law there were decisions which said that credit could not be denied. However, in VAT law ITC could be restricted if the supplier did not pay.
From July 1 2019 IF the new returns are there then this draconian and unfair provisions would only apply in case of fake invoice + disappearing suppliers.
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