Non Payment and Fraud Invoice for Deduction of Payment

[Kapil Gautam]

To all Respected Seniors

Please help me out from this situation

"Company A" made supply from year 2018-2019 with proper invoices to "Company B" but there is some rejection but not physically sent to "Company A"

Now "Company B" providing Debit Notes invoices without any GST and pressuring us for providing Credit Notes in order to reduce the amount in ledger, there is no such entry on GST portal and no such physical debit notes provided.

Help me out :-
> we have not enough money to file a case to sue them in court.
> company B is illegally debiting the ledger amount.
> suggest some legal action must be taken against them.

[Ganeshan Kalyani]

Sir, in GST, the supplier is responsible to raise debit note or credit note as the case may be. The buyer cannot furnish the details of the debit note in GSTR-2 as the same is not in enabled by Govt. Therefore, from GST point of view there is not issue on Company A. However, from an accounts point of view, your receivables will be reduced by the buyer by issuing debit note. For this you will have to refer the agreement between both the company. In case the matter requires civil case to be filed, then you may approach an advocate.

[YAGAY andSUN]

We endorse the views of the expert. Just to add our point of view that there is no jurisdiction of Civil Courts in Tax related matters. However, Writ Petition can be filed before jurisdiction High Court to seek specific relief.