Supplier insolvent through NCLT and not paid gst

[Raman Verma]

My firm have purchased material from Birla tyres, Balasore in 2020_2021.Birla tyres does not filed GSTR-3B for the same. In 2022 case was filed in NCLT for insolvency against Birla tyres. NCLT declares birla tyres as insolvent in 2023.Our advance payment was also stuck with the company. Now GST department is demanding reversal of ITC for the material which we have purchased. Kindly advice how to get out of this.

 

AI Summary

Corporate Supplier's GST Non-Compliance Triggers Insolvency, Blocking Buyer's Advance Payment and Input Tax Credit Recovery A supplier was declared insolvent by NCLT after failing to file GST returns. The buyer's advance payment was stuck, and the GST department demanded reversal of Input Tax Credit for purchased materials. The situation involves complex legal challenges related to GST compliance, insolvency proceedings, and potential strategies to address ITC reversal, including appealing to tax authorities and participating in the insolvency resolution process.