Facilitator not remitted GST collected from the company. Whether company is liable in any manner ?

[Ramesh babu]

1. I have a company client who is getting (NEEM trainees- manpower) from a facilitator. We are getting facilitator monthly bills include GST and we released payment for their full invoice as it is.

2. Now my account team says that NEEM facilitator is not remitted GST from February 2019 onwards.

Now my quiery

1. Whether we are liable for NEEM facilitator non remittance of GST as the same is already released from my end to facilitator?

2. If i have already taken the credit of GST in the facilitator bills in March, April etc .to July-19 because i have paid bill payment to facilitator. Non payment of GST by facilitator give any legal trouble for my input credit i have already taken.

3. In what section, Rule protect buyer from taking input credit GST.

Kindly advice, please.

AI Summary

Company Not Liable for NEEM Facilitator's Unpaid GST; Ensure Compliance to Claim Input Tax Credit A company inquired about its liability regarding unremitted GST by a NEEM facilitator from whom it receives manpower services. The facilitator included GST in their invoices, which the company paid. Respondents clarified that the responsibility to remit GST lies with the service provider unless the service falls under the Reverse Charge Mechanism (RCM), which manpower supply does not. Thus, the company is not liable for the facilitator's GST remittance failure. However, the company may face challenges in claiming Input Tax Credit (ITC) if the facilitator fails to pay the GST. The company should ensure the facilitator fulfills their tax obligations to avoid potential ITC denial.