https://www.taxtmi.com/forum/issue?id=120913 Businesses dealing with GST-registered MSME suppliers face a practical compliance conflict where supplier defaults in filing GSTR-1, GSTR-3B, or correctly reporting invoices can prevent reflection in GSTR-2B and create ITC exposure, even though goods or services are received and payment is otherwise due within the MSMED payment timeline. The discussion notes that relying on non-reflection in GSTR-2B, incorrect invoice reporting, or GST non-compliance as an objection under the MSMED framework to delay the 45-day period is not a settled position, since the objection mechanism is generally understood to relate to deficiencies in goods or services, quantity, or quality. The practical safeguards identified include contractual clauses making GST compliance and invoice reflection in GSTR-2B a condition for payment release, vendor compliance monitoring through monthly reconciliation, vendor rating and blocking of repeat defaulters, written GST communications to suppliers, indemnity and adjustment clauses for ITC loss, and temporary withholding or recovery of the GST component where supported by contract. en-us Sun, 10 May 2026 13:55:54 +0530 Wed, 20 May 2026 05:50:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=120913 Businesses dealing with GST-registered MSME suppliers face a practical compliance conflict where supplier defaults in filing GSTR-1, GSTR-3B, or correctly reporting invoices can prevent reflection in GSTR-2B and create ITC exposure, even though goods or services are received and payment is otherwise due within the MSMED payment timeline. The discussion notes that relying on non-reflection in GSTR-2B, incorrect invoice reporting, or GST non-compliance as an objection under the MSMED framework to delay the 45-day period is not a settled position, since the objection mechanism is generally understood to relate to deficiencies in goods or services, quantity, or quality. The practical safeguards identified include contractual clauses making GST compliance and invoice reflection in GSTR-2B a condition for payment release, vendor compliance monitoring through monthly reconciliation, vendor rating and blocking of repeat defaulters, written GST communications to suppliers, indemnity and adjustment clauses for ITC loss, and temporary withholding or recovery of the GST component where supported by contract. Discussion-Forum GST Sun, 10 May 2026 13:55:54 +0530 https://www.taxtmi.com/forum/issue?id=120913