Find
Under Sec 16(2)(aa) and 16(2)(c), ITC is allowed only when the supplier reports the invoice and pays the tax. If the supplier has not filed, the credit is not available to you yet, and DRC-01C will flag it.
GST
Credit from a supplier who never filed
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Provisions
Sec 16(2)(aa), CGST Act 2017; Sec 16(2)(c), CGST Act 2017; Rule 37A, CGST Rules 2017
Analysis
If ₹1,50,000 of credit relates to a supplier who has not filed GSTR-1 for months, pay it back through DRC-03 and pursue the supplier. Once he files and the invoice appears in GSTR-2B, you can claim it, subject to the Sec 16(4) time limit. Check the supplier's filing status on Search Taxpayer before making further purchases.
Close
- Check the supplier's GSTIN status and filing history
- Reverse or pay back the credit through DRC-03
- Recover the GST from the supplier or hold his payment
- Claim the credit when it appears in GSTR-2B within time
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