GST Department sent Notice for intimation discrepancies in the return after scrutiny for 20-21 u/s 61 under Parameter-0074 (In-eligible ITC claimed from RC is cancelled suppliers.
We have availed credit after invoices are uploaded in GSTR-1 by party as per GSTR-2A in subsequent period. The party has not filed GSTR-3B hence tax officer's own intiative and cancelled (suo-moto) registration w.e.f. 31.07.2020 on May-21.
Pl advise what reply to submit to department on the above subjects.
Notice Issued for Ineligible ITC in 2020-21; Seek Advice on Supplier Non-Compliance and Potential Litigation Challenges A discussion on a forum addresses a Goods and Services Tax (GST) issue where a notice was sent for discrepancies in the 2020-21 returns. The issue involves ineligible Input Tax Credit (ITC) claimed from suppliers whose registrations were canceled. The querist seeks advice on responding to the department. Responses suggest reviewing relevant court judgments and articles, noting that the supplier's failure to file GSTR-3B affects ITC eligibility. The discussion highlights legal complexities, potential for litigation, and the statutory challenges faced by buyers in ensuring suppliers fulfill tax obligations. Legal opinions emphasize the difficulty of compliance under current regulations. (AI Summary)
TaxTMI 
TaxTMI 
