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

Input Tax Credit reversal where supplier failed GST filings, with buyer liable to reverse credit unless relief is granted.
Buyer claimed Input Tax Credit for purchases from a supplier who did not file GSTR-3B and was declared insolvent; tax authorities demand reversal of ITC because supplier failed to file returns and remit tax, undermining the buyer's entitlement under Section 16(2)(c) and Rule 37.