Supplier has reversed the ITC of invoice after receiving payment.

[SANJEEV AGGARWAL]

One of my supplier supplied a material in June, 2021 for which total payment was made within 3 days. The supplier duly uploaded the invoice in June, 21 GSTR-1 & ITC was duly availed in our June GSTR-2A. Only one invoice transaction took place with him. In july, 2021 when we were matching our GSTR-2A, we were shocked that he has reversed ITC vide Credit Note although no Credit Note was given to us & no eway bill is there against that credit Note. He has not even filed GSTR-3B for month of June, 2021. This seems to be a fraud on us. Now what is the remedy available to us. Whether any criminal complaint can be filed against him so as to set an example for others. Kindly advise.

AI Summary

Buyer Faces Potential Fraud: Supplier Reverses ITC Without Credit Note or GSTR-3B Filing; Considers Legal Options A buyer reported that their supplier reversed the Input Tax Credit (ITC) for an invoice after payment was made and without issuing a credit note or filing the necessary GSTR-3B return. The buyer suspects fraud and seeks advice on possible remedies, including filing a criminal complaint. Respondents advised attempting an amicable resolution first, verifying the supplier's actions, and potentially involving tax authorities if necessary. They highlighted the importance of selecting reliable suppliers and suggested that legal action may be costly and stressful.