Wrong Place of supply mentioned by supplier on invoice

Dear Team,

We had purchased material from one of the supplier in Feb, 2025, while issuing invoice, supplier had mentioned wrong place of supply on the invoice whereas state name and state code was mentioned correctly.

Now, time for amendment in invoice for FY 2024-25 has been passed.

Recently, in our assessment for 2021-22, there was one supplier who mentioned wrong place of supply on one invoice and GST commissioner had rejected the ITC and we have paid the ITC back along with the interest to the GST department.

Please suggest for recent case of Feb, 2025, what steps we or our supplier to take to avoid any reversal in future at the time of assessment.

Thanks & Regards

Rajiv Kumar

Replies (1)

Since amendment of the Feb-2025 invoice is time-barred, the only practical and legally defensible solution is to strengthen documentation now. Obtain a formal declaration from the supplier confirming correct Place of Supply and tax payment, retain GSTR-1 and GSTR-3B proof, and maintain an internal justification note. Courts increasingly hold that ITC cannot be denied for clerical PoS errors where tax has been paid and no revenue loss exists, but this protection works only when proper evidence is available during assessment.

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