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

Input tax credit denial where supplier fails GST compliance may shift recovery risk to recipient pending litigation.
Whether a recipient must reverse input tax credit because the supplier failed to file returns or pay tax is contested; courts have pending constitutional challenges and some interim stays. The document advises objecting to demands, tracing supplier status, and pursuing writ or appellate remedies when exposure is substantial, noting decisions are highly fact specific and relief often requires High Court intervention.