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What if supplier has not filed Gstr1 ?

15 October 2017

My supplier has not filed Gstr1 for July.
I have submitted the details of invoices from that supplier in my Gstr2.
As supplier can not file his return before due date of gstr2, his supplies to me will not reflect in gst system in his return until due date.
What will be result as far as my gstr3 liability is concerned ?
I have already filed gstr3b taking Itc from supplies made my nonfiler supplier and paid due liabilities before due date.

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56 Replies

Dhiraj (Student) (73 Points)
Replied 15 October 2017

you have the opportunity to file gstr 1a

Aman Agarwal (321 Points)
Replied 15 October 2017

Since you have uploaded those invoices in GSTR 2, it should get reflected in GSTR 1A of the supplier where he can accept those invoices and you can avail the eligible input tax credit.

Dhiraj (Student) (73 Points)
Replied 15 October 2017

no, not you , the other person will file gstr 2 in missing invoice and that will be reflected in your GSTR 1A

Aman Agarwal (321 Points)
Replied 15 October 2017

GSTR 1 and GSTR 1A are meant for supply of goods and GSTR 2 and GSTR 2A are meant for purchase of goods. Since Ashish is the purchaser and his seller hasn't filed GSTR 1, he uploaded those invoices in GSTR 2 which should get reflected in GSTR 1A of seller where the seller has the option to accept or reject those invoices.

Dhiraj (Student) (73 Points)
Replied 15 October 2017

absolutely

anshul aggarwal (Consultant) (1074 Points)
Replied 15 October 2017

Aman is right..

ASHISH PALLOD (353 Points)
Replied 15 October 2017

Aman , if my seller does not upload his return at all till next month, then there is no question of accepting or rejecting the invoices reflecting in his gstr1a. Then in such situation, what will be effect on recipient's gstr3 liability ? Recipient ( me) has already filed gstr3b with correct itc considering invoices of nonfiler supplier and paying due tax liability.

Aman Agarwal (321 Points)
Replied 15 October 2017

GSTR 3B does not determine the ultimate liability of a taxpayer. The ultimate liability would be reflected in GSTR 3 on account of entries made in GSTR 1 and GSTR 2. If your supplier does not file his return at all within the stipulated period, you will not be entitled to avail the credit of that respective inward supply in the respective period and as a result your liability would increase in GSTR 3 compared to GSTR 3B. However, you can urge your supplier to add those invoices in the subsequent period in GSTR 1 or you can add those invoices in GSTR 2A of the subsequent period and on acceptance of the same, you can avail the input credit in the subsequent period.

ASHISH PALLOD (353 Points)
Replied 16 October 2017

It means that i have to pay ITC amount claimed during that period plus interest charge. And my supplier will also pay his tax liability plus interest charges along with penalty. I will claim that ITC in my next month's return if my supplier files his return. In this case, government will get interest charges from supplier as well as recipient. Frustrating experience.

chirayu kothi (2 Points)
Replied 16 October 2017

Yes @ Ashish you are right. Govt. will recover interest from both supplier as well as receiver which is draconian in nature. It simply govt doing business on taxpayer's money.

ASHISH PALLOD (353 Points)
Replied 16 October 2017

And they say that its " Good and Simple Tax ", joke of the year.

Shankar Sharma (505 Points)
Replied 16 October 2017

God Save the Taxpayer (GST). Pray and pay.

andy (Designer) (130 Points)
Replied 16 October 2017

Originally posted by : Aman Agarwal
	you can add those invoices in GSTR 2A of the subsequent period and on acceptance of the same, you can avail the input credit in the subsequent period.

I have heard that if supplier doesn't take any action on his GSTR-1A within the given time then all missing invoices added by the taxpayer are treated as the final purchase of the taxpayer. Is it so, kindly please confirm?