You have to explain the same in details to AO along with supporting. If you want I can assist you in same.
Notice u/s 74 of CGST Act, "Purchase from cancelled dealer"
Dear Sir, I had purchased goods during the year August 2017 to March 2018 from a supplier at that time the Supplier status was "Active" in GST Portal and the supplier had filed all GSTR 1, GSTR 3B and GSTR 9 relating to FY 2017-18. My transaction with the supplier was completed during FY 2017-18. On 28/09/2020 i got notice u/s 74 of CGST Act having subject "Purchase from cancelled dealer" and to Pay the Availed ITC on such purchases along with Interest and Penalty to the GST Department. After receiving the notice when i checked status of my supplier GST No i found that it has been cancelled from retrospective date of 01/07/2017 by the GST Department suo moto. Since i have paid the Value of goods along with GST to the supplier. How to reply to such a notice. Please guide me regarding the same.
Asked 3 years ago in GST
Hi
If the taxes were paid by the supplier, ITC benefit can't be denied to you. A proper submission may be made to highlight the same.
The submission should include details of all transactions with the supplier, extracts of GSTR 2A in which such credits were getting reflected, confirmation from the supplier that the taxes were duly paid during that period.
We may assist you with the preparation of submission and further compliance.
No need to worry in such case if you have invoice, duly paid challan and transportation copies.
you have fairly good case and GST Cancellation at later stage do not affect your ITC Right
- You can avail the ITC if all the conditions to avail the ITC were fulfilled as mentioned in section 16. The supplier has paid the collected tax to the GOI and filed all the returns for the period of transactions did with you.
Hi sir,
At the time of your purchase his status was active and the relevant purchases should have been appearing in your GSTR-2A of that year, so your claim legally cannot be denied merely because the number was cancelled after that.
Please wirte a reply to the concerned officer stating clearly your issue and presenting your GSTR-2A return copy and requesting him to please allow the claim of ITC since number was active at that time and its the fault of the supplier if after that number was camcelled retrospectively.
Also present your ledger account with that supplier stating the payments made to him and purchase invoices of that supplier.
Thanks & regards
Dear Sir,
Hope you are doing well !!
We may assist you in preparation of submission and related communications with the department.
ITC can't be denied subject to proper documentation.
You need to reply that all payments were made including GST and share a proof for the payment made.
Hi
We can assist you in that .
Please have a phone consultation for details discussion.
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