Recover interest on protective basis from your supplier if he has made default in filing of GSTR-1/IFF within due date

Department is now issuing the notices for mismatch of ITC comparing GSTR 3B Vs GSTR 2A/B. The reason for such notices because your seller has not filed his GSTR-1/IFF within due date prescribed under CGST Act, 2017. This situation is beyond the control of buyer hence the buyer should take undertaking from supplier for filing of GSTR-1/IFF within due date.


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Qualification: Post Graduate
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Location: Pune, Maharashtra, IN
Member Since: 02 Nov 2020 | Total Posts: 3

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  1. vswami says:

    To make it more explicit (:
    Look through the repeatedly posted personal viewpoints, shared to serve the intended impersonal purpose / for THE COMMON GOOD; for instance, @…/buyer-claim-itc-supplier-not-paid…
    Dec 2, 2020

    ADMN: Me don’t think / believe such write-ups without a personal ‘DISCLAIMER’ on this or other similar write-ups , – on any such topic as riddled with complicity / inconceivabe or unacceptable for any reason, will provide the necessary comfort ?!
    Feel so, despite me having gone through the longwinding ‘ Disclaimer’ newly put up on the website !?
    Suggest to consider in-depth !

  2. vswami says:

    IMPproptu 🙂 To my mind, according to an insightful understanding of the governing scheme of things as embodied in the GST Code , the ‘common thread’ pass-ing/-ed through the write-up wholly based on and wprt the cited circulars is devoid of any rationale or logic; suffers from a patent void not reconcilable with the intended implications of the concept of ‘ITC’ a novel but utterly confusing to the core. !!!<Agree ! If don't, open to be corrected and enlightened; invite to share your well-thought out reasoning, explaining why so ?!?

    1. Anilkumar Prajapati says:

      Respected Sir,
      Under pre-indirect Taxes regime, Dept. has denied the ITC of buyer on the ground of seller has not remitted the tax collected from the Buyer to dept. and buyer has paid demand arises due to denial of ITC to dept. with interest & penalty. This article will help the buyer to keep eyes on seller either they are remitting the collected GST to government. if the supplier has filed the GSTR-1 within due date, dept. will come to know that the supplier has pass on the ITC to buyer and they will collect the same from seller within time which ultimately resulted in non disallowance of ITC to buyer and minimization of dispute between dept. and buyer that are arises due to non-filing or late filing of GSTR-1/IFFC by seller or in case seller has filed the GSTR-1 after due date prescribed under GST Act, i.e. after 20th Oct. of next financial year and so many buyer has also received the notices for same from dept on this ground.
      This article will also help the seller, because making continuous default in filing of GSTR-1/IFF after due date prescribed under GST Act, seller are accumulating contingent liability toward buyer because in future, if ITC of buyer has disallowed or interest/penalty is charged by department due to availment of ITC which he was not ineligible due to late filing of GSTR-1 by Seller.
      This article is written for both buyer as well as seller, if seller file his the GSTR-1/IFF within due date he is directly helping the buyer to comply with notification issued by Dept. on availment of ITC and this will also help the seller to maintained his healthy business relationship with buyer.

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September 2021