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What happen if the seller/supplier didn’t paid GST from his side and so I can’t use Input tax credit

Rules 501 views 5 replies

mack

Thinking-to-start-business

154 Points Joined November 2022

From 01st October 2022 Government can restrict the Taxpayer's ITC if his vendor has: Defaulted in paying tax for such a period or Short paid taxes by a certain percentage. Availed excess ITC by such limit or Utilized ITC to pay taxes in excess of the maximum allowable limit. Taken registration within such period

Replies (5)

Aman Agrawal

....

101 Points Joined July 2014

You cannot use ITC if your seller doest filed his gstr1
in short you can only claim ITC which is showing in 2B.
ask supplier to file there return

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

Dear Mack
Yes Section 38 being substituted by Notification 18/2022 CT & effective from 01/10/22 , but is not operative because Rules are not framed on same till date.
Refer : https://youtu.be/mfujfI2Enkc
.

Rajendra Prasad

Employee Private

1913 Points Joined July 2017

It is better to do follow some procedure for availing ITC, if vendor not paid collected GST to Government. Also GSTIN providing the details of GSTR 3B filed status in GSTR 2A.

If also rules are not framed, possible harassments from department, like we are facing notices for ITC mismatch between 2A vs 3B from the period 2017-18, where there is no any mechanism provided at that time.

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

its on your capabilities to present your case & explanation in front of proper officer to make him understand & convinced.

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

moreover recommendation of 48 GST Council meeting also recommend the parameter to frame if there is difference of itc vis a vis GSTR-3b & 2A for said fy