Eligibility of ITC AGAINST LATE PAYMENT OF OUR VENDOR

[SURYAKANT MITHBAVKAR]

We have manufacturing unit registered under GST. One of our vendor has paid his GST Liability for 2020-21 in Mar-23. He is filed GSTR-1 and same has been reflected in our GSTR-2A.

In our books we have availed ITC against the above vendor in same year i.e. 20-21 instead of not reflected in 2A.

whether this ITC is allowed in our assessment or not. If yes any notification ?

AI Summary

Input tax credit entitlement depends on supplier's actual tax payment and timeliness for claiming credit under the statute.
Availability of Input Tax Credit is disputed where the supplier paid tax after the recipient claimed credit; the statutory condition that tax must be actually paid to government and a separate statutory time limit for claiming credit may together preclude regularising a credit taken earlier if the supplier's payment occurs after the claim period has expired.