A substantial amount of ITC of one of my main supliers is not showing in GSTR-2B since he has not filed GSTR-1 for month of June, 21. I wish not to take ITC of the same, since he is not traceable. What is the best option for me. 1. Not to take credit of ITC of him in my 3B or to take credit & reverse the same.
Supplier has filed GSTR-1 for month of May, 21 but not filed 3B. I have taken credit in May, 21 but how to reverse the same & debit him. I have to make outstanding payment to him where I can cover GST of both months. Kindly advise.
Unclaimed ITC Dilemma: Supplier's GSTR-1 Missing; Consider Claiming and Reversing Credit, Burden of Proof Under Section 155. A participant raised a concern about a supplier's Input Tax Credit (ITC) not appearing in GSTR-2B due to the supplier's failure to file GSTR-1 for June 2021. The participant is unsure whether to claim the ITC or reverse it, especially since the supplier is untraceable. One responder suggested claiming and then reversing the credit to avoid time-barred issues, citing court cases where the department should pursue the supplier first. Another highlighted the burden of proof under Section 155, suggesting litigation for relief. A third advised claiming ITC based on available documentation and communications with the supplier. (AI Summary)
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