TaxTMI 
TaxTMI 
TaxTMI 
DENIAL OF ITC DUE TO SUPPLIERS REGISTRATION HAS BEEN CANCELLED UNDER SECTION 29(2)(e)
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....ENIAL OF ITC DUE TO SUPPLIERS REGISTRATION HAS BEEN CANCELLED UNDER SECTION 29(2)(e)<br> Query (Issue) Started By: - Mehul Pandya Dated:- 28-9-2024 Last Reply Date:- 30-9-2024 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>DEAR EXPERT, MY QUERY IS UNDER. I am manufacturing firm. I am purchasing raw material from different suppliers. Sometimes we are purchasing from agents. So we dont kn....
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....ow the supplier personally. We have received 3 different DRC-01 for the F.Y. 2018-19 stating that suppliers registration cancelled suo moto. hence ITC need to reverse. initially they have issued summon to us and we have supplied documents as they required. but off the record, they told us that when ever any suppliers GST number cancelled we demand ITC from the receipient too. in one notice they ev....
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....en not issued DRC-01A. We have documents like invoice, E-way bill, payment proof. What can be done in this case. Reply By Sadanand Bulbule: The Reply: Dear querist The general observation is that If the registration was live as on the date of purchases of goods/services, then you have a strong case and judicial rulings are in your favour. However the subject purchases are alleged to have been ....
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....made from the dealers involved in fraud, wilful misstatement or suppression of facts in terms of Section 29[2][e], then it is difficult for you to convince the authorities satisfactorily as regards to the entitlement of ITC on such purchases, unless you strongly substantiate all the conditions of Section 16 with unimpeachable evidences. Reply By RaamSrinivasan Kalpathi: The Reply: If you do not ....
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....intend to reverse ITC with applicable interest u/s. 50, then be prepared for a long drawn battle with the department. To assist, you may keep the following documents ready, viz. a) Supplier tax invoice - please check if the supplier invoice conforms to the details mandated as per Rule 46 b) e-way bill c) Vehicle details with ack. of the your company taking delivery d) Payment details for t....
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....he said invoice e) Proof for physical movement of the goods to the location of the recipient, etc. Kindly also scrupulously follow paradigm SC ruling in the case of Ecom Gill Coffee Trading Private Limited - 2023 (3) TMI 533 - SUPREME COURT. Thanks Reply By Shilpi Jain: The Reply: If the supplier registration was active at the time you took the credit, its a good case to fight. Though the ba....
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....ttle will take time and some money as well. Look at the amount and the cost involved to decide. 2018-19 is a period when these provisions were not in place. So all the more a good case to fight. Reply By Sadanand Bulbule: The Reply: Dear querist Please note that the provisions of Rule 86A of the CGST Rules may also play its role in the situation explained by you. Reply By KASTURI SETHI: The....
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.... Reply: Dear Querist, The burden of proof is cast upon the department regarding the allegation of fraud etc. There is a plethora of judgements available on this issue in your favour. You have been dragged into litigation.<br> Discussion Forum - Knowledge Sharing ....