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Wrong Place of Supply mentioned by Supplier, Goods and Services Tax - GST |
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Wrong Place of Supply mentioned by Supplier |
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Dear Experts, In some of the supply transactions our supplier has mentioned wrong place of supply instead of Karnataka. GST Officer wants to disallow the input tax credit. Any remedy available? Thanks. Posts / Replies Showing Replies 1 to 18 of 18 Records Page: 1
Pls give more clarity about the query!
We have purchased materials from other state suppliers to our unit at Karnataka. Our suppliers have mentioned the place of supply as "Haryana", "Kerala" etc in some of the invoices but it should have been Karnataka. Now the Karnataka GST officer wants to disallow the credit stating that the gst amount not received by Karnataka but other States such as Haryana, Kerala. Please advise.
Have you received any letter from the department ? It is possible that GST might have been paid to correct State GST Office by the supplier despite mentioning wrong place of supply on the invoices. Confirm from the GST returns filed by the supplier. .
Dear Sir What about the GSTIN of the buyer mentioned in such tax invoices? Please clarify.
Sir, Buyer's GSTIN has been mentioned correctly. Except POS mismatch all other particulars are filed correctly by the Supplier. Thanks.
Dear Sir In that case, there should not be any problem to allow ITC. In fact, that's the " winning edge" for the buyer to have his due entitlement of ITC. Many a times officers in Karnataka are obsessed for arm-twisting games like this for unintentional human errors. You meet the higher-ups to convince the factual situation to restore ITC. It's your right too. Some times by not asking the right authority, taxpayers lose precious things.
Dear Sir In a way, the present situation is like "Shylock demanding a pound of flesh".
Sh.Sadanand Bulbule Ji, Sir, The querist can save himself from the rigours of litigation by following your perfect advice. He will have to muster courage for not parting with 'pound of flesh' in his own interest. The querist can rely upon the ratio of the following case law :-
What is the date/period of these invoices? Whether these invoices are reflected in your GSTR-2A?
You may refer to Circular No. 193/05/2023-GST File No. CBIC-20001/5/2023-GST Dated the 17th July, 2023 -Clarification to deal with difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for the period 01.04.2019 to 31.12.2021.
The incorrect PoS is in the returns or in the invoice itself?
If this is in the period FY 23-24 or FY 24-25 then request the customer to amend GSTR-1 to update the correct PoS. If on invoice ask him to issue revised invoice with proper PoS.
If none of the above works, then a view can be taken that law does not restrict ITC on the basis of PoS being of another State. However, logically speaking, if the supplier has paid tax to say 'X' Govt. and if you in 'Y' State are availing its credit, it can be denied. Though GST being a new law, we will have to see how the law evolves as the courts interpret the law.
Another way is if the supplier has paid tax to the wrong State, if he can apply refund of it and pay the correct tax and provide declaration to you in this regard, you can apply for refund.
The opening remarks says that "Our suppliers have mentioned the place of supply as "Haryana", "Kerala" etc in some of the invoices but it should have been Karnataka". Hope E-way bill is issued for the above Tax Invoice. What is place of supply as per E-way bill? In which state the Goods were physically delivered - What kind of proof [transporter consignment etc.,] is available?
I agree with views of Shilpi Ma'am. Based on the period, the supplier may also consider amending GSTR-1. Otherwise, the issue has to be litigated.
Here it is a typographical error nothing else. If SCN is issued, that will be a lame SCN and will be droppable at the first stroke. Moreover, the querist has got sufficient legal points in his favour from all the experts.
Sir, The issue pertains to FY 2019-20 and onwards till 2023-2024. We have advised the supplier to amend the invoices related to FY 2023-2024. Notice received for the FY 2019-20. Thanks to all the experts for their valuable suggestions. Page: 1 |
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