regardin section 16(2)(c)

[FARIDUDDIN AHMAD]

one of my client received intimation u/s 61 for the period 2019-20 requiring to deposit tax of Rs-104976/- due to non filing of GSTR 3B by the supplier. it has also been mention in the intimation that the assesse has done voilation of section 16(2)(c). however ITC is reflected in GSTR-2A but the supplier has not filied its GSTR-3B till the date of issue of ASMT-10. kindly advise what to do.

[KASTURI SETHI]

See the latest judgement of Supreme Court in the case of Assistant Commissioner of State Vs. Suncraft Energy Private Limited & Others - 2023 (12) TMI 739 - SC ORDER. Published in the last week of December, 2023. Take the shelter of this judgement. I hope this will solve your problem.

[Sadanand Bulbule]

Dear Sh. Sethi Sir

The GST officers are narrowly interpreting the Hon'ble Supreme Court judgement rendered in the case of Suncraft Energy Pvt Ltd - 2023 (12) TMI 739 - SC ORDER saying that since the amount involved is on the lower side, the SLP is dismissed and not on merits.

But in reality, the officers are missing the opening remarks "Having regard to the facts and circumstances of this case(s)". With this restricted and wishful interpretation, the officers are under verbal instructions from the higher-ups not to give effect to this judgement. They are unwilling to read the reasons to dismiss the SLP conjointly in the right spirit of justice.

So I understand that, there is an urgent need of the CBIC to clear the artificial clouds seeded by the departmental officers and help reach the results of the said judgement to the deserving taxpayers.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

Sir, If it is so, it is a pitiable condition but at the same time we should not give up our spirited fight against injustice. One Adjudicating Authority is not FINAL.

[Shilpi Jain]

There are a lot of cases on the aspect of GSTR 2A v 3B and payment of tax by the supplier. Some favourable and others unfavourable, depending on the facts of each case.

If it is a considerable amount involved then keep the matter alive by filing reply or appeal, so that any favourable decision will help you overcome the demand.

AI Summary

Input tax credit denial when supplier fails GSTR-3B - challenge demands using higher-court guidance and pursue appeals.
An intimation/demand was issued citing contravention of section 16(2)(c) where Input Tax Credit appears in purchase records (GSTR 2A) but the supplier had not filed GSTR 3B, prompting an ASMT 10 demand against the recipient. Contributors note recent Supreme Court guidance favorable to taxpayers but report inconsistent departmental application; practical advice is to file a reasoned reply and, for significant amounts, pursue appeals to preserve the opportunity to obtain a favourable decision.