HOW & WHERE TO REVERSE ITC OF SUPPLIER WHO HAS NOT FILED US, Goods and Services Tax - GST

[SANJEEV AGGARWAL]

One of my supplier has filed GSTR-1 for the month of May, 2021 & i have duly availed ITC against his invoices as they were showing in my GSTR 2A in the month of may. But he has not filed GSTR 3B for month of May, 2021 & hence not paid GST for the month of May, 2021 and is absconding now. Amount equivilant to GST Input is still payable by me. I want to reverse the ITC claimed in month of May, 21 & reverse the same in my August 3B. How & where to reverse in GSTR 3B & under which section.

Posts / Replies

[Shilpi Jain]

The law is not having power to require such reversal. Pls go though he article at this link.

https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=9746

However in case you do not want to dispute with the department you can reverse it in your GSTR-3B as other reversals.

[KASTURI SETHI]

You can reverse in Table no.4 serial no B(2) of GSTR 3B. The supplier is defaulter. Under Section 155 of CGST Act, the burden of proof is cast upon the person who takes credit.

In case you do not intend to face rigours of litigation, you should reverse, especially, in view of Section 155 of CGST Act.

[Ganeshan Kalyani]

Sir, if the amount of input tax credit is substantial then take the credit and wait for litigation.