Supplier not deposited GST
- The Supplier GST Registration can be cancelled by GST Officer and
- Recipient will not be entitled to claim Input Tax Credit . Thus he is required to reverse Input Tax credit along with interest .
| (b) | a person paying tax under section 10 [Composition scheme] has not furnished returns for three consecutive tax periods; or | |
| (c) | any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or |
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Eligibility and condition for taking input tax credit.
Section – 16, Central Goods And Services Tax Act, 2017
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(2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,—
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| (c) | subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input tax credit admissible in respect of the said supply; and |
Section – 42, Central Goods And Services Tax Act, 2017
(3) Where the input tax credit claimed by a recipient in respect of an inward supply is in excess of the tax declared by the supplier for the same supply or the outward supply is not declared by the supplier in his valid returns, the discrepancy shall be communicated to both such persons in such manner as may be prescribed.
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(5) The amount in respect of which any discrepancy is communicated under sub-section (3) and which is not rectified by the supplier in his valid return for the month in which discrepancy is communicated shall be added to the output tax liability of the recipient, in such manner as may be prescribed, in his return for the month succeeding the month in which the discrepancy is communicated…..
(8) A recipient in whose output tax liability any amount has been added under sub-section (5) or sub-section (6), shall be liable to pay interest at the rate specified under sub-section (1) of section 50 on the amount so added from the date of availing of credit till the corresponding additions are made under the said sub-sections.
How to Check your Supplier is Regular in Filing GST Return
Visit www.GST.gov.in and Go to Search Taxpayer : Click by GSTN and enter GSTIN number to get the return filing status of suplplier