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

Input Tax Credit availability depends on supplier's tax payment; recipients may face reversal, interest and penalty.
Recipient liability to reverse claimed Input Tax Credit arises where supplier has not paid the tax and has not declared supplies in returns, creating an ITC mismatch; the recipient bears the burden of proving entitlement, must reverse ITC and pay interest for wrong availment, faces possible penalty under penal provisions, and may re avail the credit if the supplier later pays and rectifies returns; an amnesty scheme and blocked ITC rules for immovable property supplies were noted as related considerations.