Whether buyer has right to block payment gst unpaid
Stephenmarks
(Querist) 24 October 2018
This query is : Resolved
Dear sirs, as far as I know, a buyer can request or issue notice to seller to file Gstr1 to claim buyer's itc. Inspite of our prompt filling of gstr1a company has blocked our payment claiming we have not filed Gstr3b. Is it appropriate? Do they have rights?
Dr J C Vashista
(Expert) 25 October 2018
You are holding a copy of GST-payment, show it to them.
It is not a legal problem for consideration, analyses and obligation of experts on this platform.
You may post it on CA Club or engage a tax consultant.
R.K Nanda
(Expert) 26 October 2018
Contact tax lawyer.
Advocate Rajamahendra Varma P
(Expert) 22 December 2018
Yes, buyer have all the rights to hold your payment (to the extent of tax liability) until you report/file your GSTR-1, and the same transaction must reflect in their GSTR-2A. If you are not reporting the transaction on time, it is buyer responsibility to pay tax as RCM (he will use the amount which they hold in your payment).
