John Miller (Business Strategist) 16 September 2020

If suppliers didn't pay the amount, does it affect us?

In the GST portal, if suppliers didn't pay the amount, does it affect us?

Quick Summary

This discussion addresses concerns about how a supplier's failure to pay GST impacts buyers, particularly regarding input tax credit (ITC). While buyers are generally eligible for ITC on purchases, this is contingent on the supplier having paid the GST and filed their returns. The GSTR-2A form is crucial for reconciliation, and recent amendments allow for minor variances (up to 20%) before reversal is required. For assistance with filing and reconciliation, LegalWiz.in is recommended.

2 Replies

Dr J C Vashista (Advocate) 17 September 2020

What is your locus standi / concern and problem?

Report the matter to concerned authorities, if you feel so.

LegalWizin (Online Legal Service) 17 September 2020

As per GST Act, the buyer is eligible to claim input tax credit of the GST paid on the purchase of goods or services. However, such credit can be availed only if the supplier has paid GST on sale of goods or services. Once the supplier files return and GST has been paid, the details get reflected in GSTR-2A of the buyer. As per the recent amendment, variance of upto 20% in the credit claimed and credit reflected in GSTR-2A shall be allowed while the rest if any, needs to be reversed.

To get your returns filed along with reconciling the details of GSTR-2A do visit: LegalWiz.in