GST
Quarterly re-check of regular suppliers
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
A supplier can become non-compliant or be cancelled after you onboard him. Regular suppliers should be re-checked at least each quarter. New or high-value suppliers should be checked before each large order.
Provisions and law
- Sec 16(2)(c), CGST Act 2017ITC is allowed only if the tax charged has actually been paid to the Government by the supplier
- Sec 155, CGST Act 2017The burden of proving eligibility for ITC lies on the person claiming it
Analysis
Re-check status, filing table and any change in address or business type. Example: a packaging supplier with clean history stops filing GSTR-3B from July; a September check catches it before your next Rs 8 lakh order. Keep a simple register with GSTIN, last check date, filing status and risk rating. It also shows the department your diligence.
Conclusion
- Maintain a supplier register with GSTIN and risk rating
- Each quarter, check status and filing table for every active supplier
- Flag suppliers with gaps and hold GST payment
- Drop or replace suppliers that stay non-compliant
A Savvy can do this for you
Supplier due diligence: GSTIN, filing history, 2B and IMS match, red flags
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