TaxTMI 
TaxTMI 
M/S Mahavir has Filed GSTR-1 for Qt Ending June 2026 with outward tax liability of 34220+34220 (CGST + SGST) After deducting available ITC the Tax Payable comes to Rs.16829+16829. Due to insufficient funds dealer has not paid the Challan and filed GSTR-3B till today. Now the Officer has issued DRC 13 to our purchasing dealer M/s Shristi for Rs 34220+34220. Does this action of the officer is correct? There are no previous Returns pending. What recourse is open to M/S Mahavir? If M/S Mahavir pays the challan and Files GSTR-3B now, does M/S Shristi is still liable to pay?
Does Non-filing of GSTR3B invokes action u/s 79(1)(c)
03 Sep 2026 
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DRC-13 recovery requires proper liability determination and procedure before a purchasing dealer faces recovery for supplier's unfiled return.
Recovery through DRC-13 from a purchasing dealer for a supplier's non-filing of GSTR-3B is questioned where eligible input tax credit exists, prescribed pre-recovery procedure was not followed, or no liability-determining order was passed. The defaulting taxpayer should file GSTR-3B and discharge the correctly computed net tax liability with applicable interest. Once that liability is discharged, the purchasing dealer should not make a duplicate payment, and any double recovery may require refund to the appropriate person. (AI Summary)
Recovery through DRC-13 from a purchasing dealer for a supplier's non-filing of GSTR-3B is questioned where eligible input tax credit exists, prescribed pre-recovery procedure was not followed, or no liability-determining order was passed. The defaulting taxpayer should file GSTR-3B and discharge the correctly computed net tax liability with applicable interest. Once that liability is discharged, the purchasing dealer should not make a duplicate payment, and any double recovery may require refund to the appropriate person. (AI Summary)