Reverse of ITC TAKEN ON SUPPLIER INVOICE WHO HAVE NOT FILE GST 3B NOR PAID GST AMOUNT REG.

[BHAKTIKANT BHATT]

Sir.

We have purchase Material from Party A.in the month of May,June-2018.Recently we have received letter from GST DEP.PROVISION OF SECTION 41 OR SECTION 43A

ASKE US TO REVERSE OF ITC TAKEN ON SUPPLIER INV.A.WHO HAVE NOT PAID GST NOR FILE GSTR-3B RETURN.SUPPLER ALREADY WINDUP THEIR BUSINESS ACTIVITY FROM YEAR 2020 ONWARDS.

SIR kindly give your valuable suggestion in the above matter and oblige

Thanks.

AI Summary

Debate on Reversing Input Tax Credit Under Section 16(2)(c) of CGST Act Due to Supplier's Non-Compliance A discussion on a forum addresses the issue of reversing Input Tax Credit (ITC) claimed on invoices from a supplier who neither paid GST nor filed GSTR-3B returns. The supplier ceased operations in 2020. Participants in the forum, including legal experts, discuss the challenges of Section 16(2)(c) of the CGST Act, which denies ITC if the supplier fails to pay GST. The Delhi High Court and other courts have been involved in related cases, with some stays granted. Experts suggest litigation as a potential solution, given the complexity and ongoing legal challenges surrounding the issue.