Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Nongeneration of ewaybill by vendor dept has demandin recersal of itc

421 views

Save Share

Manju Nath

65 Points Posted on 03 April 2023

sir
The Dept authorities has been demanding reverse itc for nongerenation of eway bills by vendor.This mistake has been done by supplier but dept demanding reverse itc how for it is correct.

Replies (3)

Quick Summary

Departmental authorities are demanding the reversal of Input Tax Credit (ITC) when vendors fail to generate e-way bills. However, the law primarily requires a tax invoice and receipt of goods to claim ITC. While an e-way bill can be proof of receipt, it's not the sole condition. You can provide alternative evidence, such as a supplier's undertaking or Goods Receipt (G.R.) copy, to demonstrate that the goods were indeed received, thus challenging the demand for ITC reversal.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 04 April 2023

As the conditions to claim ITC is that you must have Tax Invoice & You have received the Goods & one of the relevant proof that goods has been received is Eway Bill.

So convince the officer by providing relevant proof that goods are being received. Can take the under-taking from Supplier or G.R. copy can be provided.

Manju Nath

65 Points Posted on 04 April 2023

Thanks

CA Mayank A Jain

Chartered Accountant in Practice

855 Points Posted on 05 April 2023

There is no such condition under the law which requires reversal of ITC if supplier fails to generate EWB. As long as you have received the goods, the credit is eligible to you. This is a frivolous point raised by the departmental officer.