Question
If Purchaser is not Paid the invoices is there any remedy available to supplier for reverse the invoice or cancel the invoice as the purchaser is denying to pay the supplier any thing can supplier reduce its output liability is any rule or section permit him to do so as purchaser not paid any thing the invoices are belongs to july 2017 plz reply as soon as possible or the supplier issue credit notes regarding such invoices for reversal of IGST paid by the supplier
Answer
"where a recipient fails to pay to the supplier
of goods or services or both, other than the supplies on which tax is payable on
reverse charge basis, the amount towards the value of supply along with tax
payable thereon within a period of one hundred and eighty days from the date of
issue of invoice by the supplier, an amount equal to the input tax credit
availed by the recipient shall be added to his output tax liability, along with
interest thereon, in such manner as may be prescribed"
Therefore if payment of supply is not made within 180 days then the credit is to
be reversed by adding it in output tax liability.
There is no facility available to the supplier to reverse the tax paid or take
refund of it.
The Credit note can be issued by the supplier only if the goods are returned or
on execution of certain acts decided at the time of supply. (Reply
dt.05/07/2018)