Received notice against ITC Claimed

[Sameer Lingras]

Hi,

We have received notice against the ITC claimed. We have paid all the GST pertaining to the supply of goods by our supplier. We have all the invoices with us. As supplier did not paid the GST to the Government . We have received the notice for reversal of ITC along with penalty and Interest. GST is not taking any action against the defaulter supplier instead asking us to pay the same.

Please guide us.

 

 

AI Summary

Recipient Faces ITC Reversal Due to Supplier's GST Default; Section 16(2)(c) of CGST Act Cited in Dispute Resolution A party received a notice for reversing Input Tax Credit (ITC) due to their supplier's failure to pay GST to the government. Despite having paid the supplier and possessing all relevant invoices, they face penalties and interest. A respondent explained that under Section 16(2)(c) of the CGST Act, the recipient must prove ITC entitlement, and suggested exploring an amnesty scheme. Another respondent noted that the recipient could reclaim ITC once the supplier fulfills their tax obligations. The discussion highlights the complexities of ITC claims when suppliers default, emphasizing the recipient's burden to ensure compliance.