Wrong Place of Supply mentioned by Supplier

[Shri Sasikumar]

Dear Experts,

In some of the supply transactions our supplier has mentioned wrong place of supply instead of Karnataka. GST Officer wants to disallow the input tax credit. Any remedy available? Thanks.

AI Summary

Supplier Error in Place of Supply on Invoices May Lead to ITC Disallowance; Solutions and Potential Litigation Discussed A supplier mistakenly listed the wrong place of supply on invoices, indicating states like Haryana and Kerala instead of Karnataka. This error led a Karnataka GST officer to consider disallowing input tax credit (ITC) because the GST was not paid to Karnataka. Despite the buyer's GSTIN being correct, the mismatch in the place of supply is causing issues. Experts suggest various remedies, including amending GSTR-1 returns or invoices, consulting higher authorities, and potentially litigating if necessary. The error spans from FY 2019-20 to 2023-24, with a notice received for FY 2019-20.