Eligibility of ITC

[Rajesh Kumar]

Sir

Is ITC available to the recepient if supplier doest not file GSTR 3B returns i.e not paid taxes to the govt. ?

What are provision in this regard ?

AI Summary

Can a recipient claim Input Tax Credit if the supplier fails to file GSTR-3B returns? Section 16 of CGST Act debated. A discussion on the eligibility of Input Tax Credit (ITC) under the Goods and Services Tax (GST) regime, focusing on whether a recipient can claim ITC if the supplier fails to file GSTR-3B returns and pay taxes to the government. Most contributors agree that ITC is unavailable unless the supplier has filed the return and paid the tax, as per Section 16 of the CGST Act. Some suggest that the recipient should ensure the supplier's compliance to avoid potential penalties. There are mentions of legal precedents supporting the recipient's claim, but the consensus is to avoid litigation by ensuring tax payment by the supplier.