SCRUTINY PARAMETERS CASE FOR 20-21

[SURYAKANT MITHBAVKAR]

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.

AI Summary

Ineligible input tax credit due to supplier non filing and cancellation, triggering reversal obligations under Section 16(2)(c).
Dispute concerns availability of input tax credit where the supplier's registration was cancelled and the supplier failed to file required returns. The operative issue is whether a recipient can retain ITC taken after invoices were uploaded when the supplier did not file GSTR-3B and did not deposit tax, engaging the condition in Section 16(2)(c) and triggering reversal and recredit procedures alongside return reconciliation and recovery obligations.