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Supplier is filing GSTR1 but the recepient's GSTN is inactive/cancelled by the department

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Suraj Kumar

23 Points Posted on 11 July 2020

is there any voilation of law by any of these two, if the supplier is still supplying goods to those persons whose GSTN' registration is cancelled by department, and still supplying the goods and details are submitting while filing GST R1, on monthly basis from a long time.

Replies (3)

Quick Summary

This discussion addresses the legal implications when a supplier files GSTR1 with an inactive or cancelled recipient GSTN. It highlights the need to verify if the supplier is regularly filing returns and if the invoices appear in your GSTR2A. The core issue is whether the department takes action against either party when the recipient's GSTN is cancelled, yet the supplier continues to declare these transactions. The advice suggests investigating the supplier, checking GSTR2A, and ensuring the supplier's compliance, while also noting the recipient may need to seek revocation of their cancelled registration.

CA Raj Doshi

Practising CA

5649 Points Posted on 11 July 2020

You need to inquire with the supplier about the issue and check your GSTR2A if the said Bill's are getting reflected.Also check whether supplier is regularly filing gstr 3B and gstr 1.

And if it is genuine issue then fine. Else, safeguard yourseleves .

Suraj Kumar

23 Points Posted on 11 July 2020

The bill is getting reflected in 2A and also the supplier is filing periodical retuns. However the recepient GSTN is cancelled but the 2A liability is increasing in each month. does the department take any action to the recipient or to the supplier for such activity as the amount is reflected in 2A.

thanks in anticipation