GST - ( REMEDY TO ADJUST LATE PAID TAX WITH INTEREST )

[VIPUL JHAVERI]

Dear Experts

kindly guide for pharma mfg client for expansion bldg contractor during fy 20-21 raised bill say appx 50 lakhs and gst @18% at rs 9 lakhs was also added in his bill which were accounted and itc for 9 lakhs claimed however due to covid at contractor end due to hospitalisation of staff and owners contractor failed to file same in gst return nor paid this gst billed in 21-22,

on pointing out same he paid in dec 22 tax of 9 lakhs with 2 lakhs interest however now gst officer informed last date to-avail credit was sep 22 so no itc credit for co is possible and nor contractor get this back pl suggest way out to use this tax payment made and avail credit also pl note ,while paying in dec 22 vendor mention 21-22 invoice dates as 22-23 dates so then he can make payment in 22-23 for 21-22 bills made possible

AI Summary

Input tax credit availability questioned where supplier's late tax payment may not regularise recipient's credit entitlement.
The dispute concerns entitlement to input tax credit where a supplier failed to pay and file for GST within the statutory period but later discharged the tax with interest. One position stresses that invoice date and statutory time limits bar post-facto regularisation of ITC; an opposing view argues that if the recipient claimed credit within the statutory cut-off and the supplier later pays, denial of credit would cause unjust enrichment and could be litigated. Practical measures include supplier certificates, adjustments in subsequent bills, and assessing whether the expense is creditable as repairs.