GST Invoice Goods of Rs.10 lacs sold. Buyer says goods are defective but do not return the defective goods to seller and propose to settle the said invoice for 5 lacs. Seller not agreed to settlement and refused to issued Credit Note. Buyer took ITC on total value of Rs.10 lacs. Ques. A : What are the remedies in GST Law for Buyer to avoid the payment of Rs.5 lacs for defective goods ? Ques. B : Whether Seller can also claim his entire amount of Rs.10 lacs as buyer has claimed full ITC on Rs.10 lacs of goods. Pls. Reply as per GST Law.
@Neeraj_Goyal Hello Neeraj,
Buyer can claim GST Input credit once it is reflected in GSTR2B. Thus, if seller have reported and paid GST on entire amount of ₹10 lacs, buyer can claim ITC on ₹10 lacs. Going forward if seller agrees to settle at ₹5 lacs and issues credit note of ₹5 lacs, then buyer needs to report debit note and reverse the ITC claimed on ₹5 lacs (either against credit or pay in cash).
Hope this helps !
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