Supplier not uploading invoice details in GSTR-1 mischievously.

[SANJEEV AGGARWAL]

Now that u/s 16(2)aa buyer can claim ITC only if invoice is uploaded in GSTR-1 of supplier and is visible in GSTR-2B of buyer, what remedy is available to buyer under GST Law if seller does not upload the same mischievously. Asking supplier to upload the same is not an option since the act is mischievous & intentional.

[Rajagopalan Ranganathan]

Sir,

The only remedy available is to withhold payment of the tax component charged by the supplier in his invoice though you can pay the cost of goods supplied. You cannot avail the ITC since the supplier has not uploaded the invoice issued by him in GSTR-1 and thereby it will not reflect in your GSTR-2A/2B. Since you have not availed of the eligible ITC, the provisions of second proviso to Section 16 (2) (d) of CGST Act, 2017 will not be attracted.

[Shilpi Jain]

Agree that payment should be withheld. In case that is not feasible, the govt. Should make it in such a way that the recipient should be able to share details of those invoices which are not disclosed in GSTR-1 by supplier and automatic notices should go to supplier for these...

Once this can be done, compliance will become easier

[KASTURI SETHI]

The best strategy is suggested by both experts but it should be a last resort. It will click. At the same time, you should not lose cordial relations with your supplier. The strategy should not be practised at the cost of cordial relations. The maintenance of cordiality is a visionary step.

[KASTURI SETHI]

Dear Querist,

You can also make a written request as well as verbal request to the jurisdictional GST Range Officer to intervene and help in solving the problem.

[Sadanand Bulbule]

Wishing all the subject experts and the readers a warm Happy New Year 2022.

I fully agree with the cardinal views of Sri. Kasturi Sethi Sir. Trust and cordial relation ia another name for business. Commercial transactions do not take among known enemies. So while maintaining long term cordial relations, such ITC issues need to be settled mutually and peacefully. Innocent looking mischievous elements are part of any society, be it business or social segment. Pursuance and perseverance fetches the best results. War for peace is the last option.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

Sir, I am indebted to you for outpouring based on legal and logical force. . Really your understanding and interpretation of the issue and drafting are par excellence.

[CA Hemanth Kumar]

Dear Sir,

Considering the amount involved we may needs to know the doors of High Court in case if department dispute the genuineness of the transaction and tax payment.

AI Summary

Input Tax Credit restriction when supplier omits invoice upload - buyer may withhold tax component pending supplier compliance or intervention. Restriction on Input Tax Credit occurs when a supplier fails to upload invoice details in GSTR 1 so the invoice does not appear in the buyer's GSTR 2B, precluding ITC under section 16(2)aa. Recommended responses are withholding payment of the tax component while paying for goods, seeking mutual settlement, requesting intervention by the jurisdictional GST Range Officer, and supporting system enhancements to allow recipients to flag undisclosed invoices and notify suppliers.