Sir
During GST audit of 2017-18 conducted by the department,the department has raised a demand of ₹ 5 Lac on account of ITC availed by the taxpayer on account of GST paid by taxpayer under RCM.The taxpayer has paid GST first and then claimed ITC on freight and loading/unloading exps etc.
But the department has raised a demand with the reason that taxable person has availed ITC in contravention of Rule 36 of CGST Rules, 2017 by not issuing invoice as per clause (f) of subsection 3 of Section 31 of CGST Act,2017.
Please advise the course of action in this regard.
Taxpayer Challenges 5 Lakh GST Demand for ITC Without Invoice Under Section 31(3)(f) CGST Act, 2017 A taxpayer faced a demand of 5 lakh during a GST audit for availing Input Tax Credit (ITC) without issuing an invoice as per Section 31(3)(f) of the CGST Act, 2017. Various contributors on a forum discussed the issue, suggesting it could be contested as a procedural lapse rather than a substantial violation. Some argued that ITC eligibility requires an invoice, per Section 16(2)(a), while others noted that since the tax was paid under Reverse Charge Mechanism (RCM), the denial of ITC was unfair. The consensus was to emphasize the absence of revenue loss and consider legal action if necessary. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
