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Supplies wrongly selected as reverse charge applicable by supplier

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anita

trainee

246 Points Posted on 05 May 2022

dear Sir,

our supplier has recently switched to e invoicing and has filed their first gst 1 return of April on their basis.

he did not realise that supplies have been marked as "attracts reverse charge" so what should we do now?

if he pays the liability in 3b can we take credit for them ?

Replies (3)

Quick Summary

A supplier mistakenly applied reverse charge to invoices during their first e-invoicing GST return. This means the recipient cannot claim Input Tax Credit (ITC) as it won't appear as eligible in their GSTR-2B. To resolve this, the supplier must amend the invoices. Only after the invoices are corrected and reflected properly can the recipient claim the ITC.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 07 May 2022

No.... As per section 16(2)(aa) , the credit of ITC will be eligible only when it is reflected in 2B of Recepient as Eligible credit.

Hence ask your supplier to amend those invoices and only after that you are eligible to take credit for the same.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 07 May 2022

You will have to ask the supplier to amend the invoices otherwise the system will show your liability to pay taxes instead of supplier.

@ Pankaj Rawat The transactions whether shown under reverse charge or forward charge will nevertheless get reflected in GSTR-2B as eligible credit. However they will not be eligible just because they are being shown in GSTR-2B as eligible credits