Dear LMAI Members and Friends,
There is a Problem. Hence this Post.
This is regarding the recently rising Problem of “Vanishing” Vendors, leading to big losses in GST. And this problem is rising .
The information below is True and is with personal experience by us.
And this message is to help other LMAI members avoid this problem.
Vanishing Companies Includes (a) Those whose GST Registration is Struck off by the GST Dept (b) Those who are registered but are not filing GST Returns / filing them improperly
Every month, we are coming across cases of GST Audit by Department, and their insistence of GST-2A matching with your GST-3B.
If the difference is substantial, they ask for Detailed GSTR2A matching…. Even if this is not legally compulsory, Even if some High Courts have come in support of the Manufacturer/Trader, that he is not responsible for the mistake of non filing by the Vendor… but yet matter is being hotly debated.
The Above “addition” leads to Reversal of GST ITC with Intt @24% and about 15% Penalty
This means… that if the vendor charged you GST of 5 lakhs in 2018-19, it will become about 10 lakh including Interest and Penalty by 21-22.