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

Input tax credit conditions: recipient risks denial of ITC if supplier fails to remit GST despite invoice payment.
The supplier (facilitator) bears the primary obligation to remit GST collected; recipient liability arises only if the supply falls under the Reverse Charge Mechanism. Payment of invoices including GST by the recipient does not shift the remittance duty. However, for entitlement to Input Tax Credit, the tax must actually have been paid to the government; failure by the supplier to deposit tax can lead to denial of ITC, recovery with interest and penalty, and places the evidentiary burden on the recipient to demonstrate payment.