Wrong availment of ITC

[Sudhir Kumar]

Sir, I am a recipient and purchased some goods from the supplier. By fulfilling all the norms availed the ITC. Since my supplier has filed GSTR-1 so ITC for which I was eligible reflecting in my GSTR-2A. Now the department has sent notice to reverse the ITC as the supplier has filed only GSTR-1 , they have not filed GSTR-3B and also not credited the GST to the government account. But I have paid the GST as per invoice issued by the Supplier. Should I reverse the ITC as department noticed and pay the GST twice. Please suggest me.

AI Summary

Recipient advised to contest ITC reversal due to supplier's non-filing of GSTR-3B; explore legal options if needed. A recipient of goods, having availed Input Tax Credit (ITC) based on a supplier's GSTR-1 filing, received a notice to reverse the ITC because the supplier failed to file GSTR-3B and remit the GST to the government. Legal experts advised persuading the supplier to file GSTR-3B and submitting proof to the department to avoid reversing the credit. They highlighted that the department should first recover the tax from the supplier. Additionally, if the supplier is traceable, the GST liability should not fall on the recipient, and legal recourse may be considered if adverse actions are taken.