All Kerala GST practitioners association said on Wednesday that input tax credit (ITC) reversal on account of the Rule 37A will dampen businesses as it puts the burden of tax liability on the buyer if the seller doesn’t pay the tax.
In other words, if the supplier does not have the money to pay the tax in time, the buyer will have to pay the tax and interest on his behalf.
The GST law mandates that the selling entity files the GST return showing tax as per the bill issued. But under the newly introduced rule, if the supplier who made the sales files only GSTR-1 containing information about the bills for the respective month, the buying firm should ensure that GSTR-3B, which is a continuation of GSTR-1, if filed within the time limit. Otherwise the input tax credit (ITC) shown on the bill received by them should be paid to the department along with interest.
“When there are strict provisions in the GST system to take the tax received from the hands of the person, who made the sale, things will come to a situation where the burden will be doubled on the shoulders of the buyer and he will be in trouble.”
GST practitioner, Santosh Jacob said.
Read more at : The Times of India
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