Can GST Department Block ITC or Ask Buyer to Pay GST if Seller Fails to File his GST Return?

Would Purchaser be liable for GST payment to the Government, if the same has not been paid by the supplier.
As per the section 16(2)(C) of the Act, the recipient of goods and services can avail Input Tax credit only if supplier has deposited the tax to the Government.
So, issue is whether credit can be denied in the hands of the buyer of goods and services for the non-payment of taxes by the supplier, even if the same amount of tax already been collected from the buyer?
As per the above section, the government allowed the purchasers to avail input tax credit, provided he should be ensuring that the said payment has been deposited to the Government by the Supplier.
Practically, this seems impossible, as it is difficult for any human being to have a full control over the supplier or to watch him on everyday basis to avail input tax credit. There are many case laws in this respect

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[riteshbaheti]

Agreed Govt should think over it and introduce deterrent penalty provision on suppliers like shamlal instead of buyers

[shrishailtalawar]

There are so many baseless things in GST it should be resolved by law makers

[trivedikumarsonesh]

आपका बहुत-बहुत धन्यवाद🙏
आपने अकाउंट्स की लाइन अकाउंटेंटओं और HR के लिए बहुत आसान बना दी✌

[chandanmalsharma]

You are 100% right buyer should not be responsible for the return not filed by the supplier as such buyer has full right to avail the Input for taxes paid by him to his supplier

[w.m.jahagirdar]

It's clearly described in section 9 and 16 (collect and deposit) liability and responsibility of seller ( shyamlal), not a buyer, so in any circumstances buyer is not responsible and if gst official is issuing notices, so it is very injustice

[Akshay-vquv]

Please make more such videos with such simple examples 🙏

[tstraders]

Sir, first of all thank you so much for such an informative video..
Case : i purchased cement in the month of January 2024 . Due to some technical issue ( as said by supplier) the seller could not update his sales within 11th of february. However he updated it on 14th of Feb (;as confirmed by him). But, as a registered seller I had to update my sales by 11th of March on the basis of the tax invoice received from the supplier. Now, there is a huge gape in purchase and sales amount.. How can I adjust and minimise this tax.. please suggest..

[gauravsingh-szcd]

Sir I m a ca student ap ne to sec. Hi yaad kara diya 😂 best vedio I understand easily

[AshwinikBaghel]

Every recipient is a supplier also Singh ji . And ITC under GST is seamless and is dependent upon filing of self assessment return. If return is filed and tax is deposited by every supplier ( who is a recipient also) the government assumes that tax is received and ITC is passed on to buyers. It's a chain and needs continuity .

[sureshchandra]

You have taken a good topic. The govt is trying to catch Ram Lal if not Sham Lal. What is the remedy?

[ashutoshatre]

As a matter of precaution, purchaser can add a condition while entering into a contract that if purchaser fails to claim ITC due to any act or omission by the supplier, recipient of supply will be compensated by the supplier to that extent. Similarly, in the absence of such express condition, a condition may be incorporated saying that any loss which a purchaser may suffer due to non compliance of any tax law, seller will compensate purchaser to that extent with interest @xx. In the absence any such condition purchaser may write a letter to seller by specifying that he has suffered a loss of ITC due to non-payments of GST with Government exchequer and he may be compensated and send a copy of letter to GST officer within whose jurisdiction seller is covered.

[shehzadaali]

Yes you are absolutely correct but numbers of people's are in problem due to ruke no 3

[pramodjindal]

Sir, registered sellers se purchase k mamle me gst sales term pr imposed h n ki purchase term pr! Yani sels pr tax h, yani gst department me tax deposit krne ki lybilty seller yani supplier yani shyamlal sirf shyam lal ki hi h, is bat ko gst department ko apne actual working me bhi apply krna chahiye!!

[mspatel]

THATS GREAT INFROMATION
THANKS A LOT

[RaviGupta-dmp]

You are ryt sir i am sufring this problem how can safe my self for thes

[Aru-nl]

What is the procedure for those who have below 20 lakh income but they need gst registration for online business. Can they file nil return or not.

[sandeepkumarsahu]

Ek dam sahi kha aapne agle ne hmse tax liya aur hmare portal pe so nhi kar rha to hm kya kare usne to hmse tax le liya n
Man lijiye aaj 15 tarikh hai aur hmne shayam lal se 1 lakh ka mal liya aur wo mal ko maine agle mhine 10 tarikh tak sel dikha diya aur 10 tatikh k badd malum chale ki shayam lal ne tax jo hamse liya usko bhara hi nhi hai to hm kyu de shayam lal pe jurmana lagna chahiye aaj kal to WhatsApp pe bina signature aur mohar k bill aa jate hai hatho hath bill mile signature aur mohar k sath tab to ham unpe koi case kare warna shayamlal to khe dega mere yha se koi mal kharid hi nhi huyi hai

[DrPravinRane]

supplier ko bar bar batane par bhi agar vo gst file karte vakt buyer ka invoice upload nahi kar raha, to kya kare buyer? kya action le uske khilaf?

[sujankumarsinha]

In GST output tax liability and input tax credit are 2 sides of a single coin.
So, If a Third party called GST department has to maintain the balance of the coin, then first they should make an alignment with the supplier. They should focus on GSTR1

[sureshrajpurohit]

Sir tussi great ho, aise videos banate rehna sir thank you.