Supplier not filing GST returns? What it means for your input tax credit
You can claim input tax credit (ITC) on a purchase only when the supplier reports the invoice in their GSTR-1 so that it appears in your GSTR-2B; this has been the rule since 1 January 2022. If a supplier doesn’t file, the credit doesn’t reach you and you may have to pay that tax yourself until they file. Check suppliers’ filing regularity before buying in volume, and follow up quickly on invoices missing from GSTR-2B.
How the credit reaches you
- Your supplier files GSTR-1 with your invoice (by the 11th of the next month for monthly filers; quarterly filers can upload through IFF).
- The invoice appears in your GSTR-2B, generated on the 14th.
- You claim the credit in your GSTR-3B.
Two more conditions matter: the supplier must actually pay the tax through their GSTR-3B, and if they haven’t done so by 30 September of the following year, you may have to reverse the credit and claim it again once they pay.
What to do every month
- Match your purchase register with GSTR-2B and list invoices that are missing.
- Send each supplier its missing invoices the same week, with the GSTIN and invoice numbers.
- For regular late filers, agree in the purchase order to hold back the GST part of the payment until the invoice shows in your GSTR-2B.
- Prefer suppliers who file every month: see how to check filing status.
Get told before it hurts
REFFNET shows each business’s GST filing record as “files regularly”, “delayed” or “not filing”. Add your suppliers to your watchlist in the app and we alert you when a GSTR-3B is missed or the registration status changes. See also how to check a supplier before paying an advance.
Questions people ask
If my supplier files late, can I still claim the credit?
Generally yes, in a later month once the invoice appears in your GSTR-2B, as long as you are within the time limit: 30 November after the end of the financial year (or your annual return, if earlier). Confirm with your CA.
When is GSTR-2B available?
It is generated on the 14th of the month after the tax period.
How can I see whether a supplier files returns?
Search its GSTIN on the GST portal or in the free REFFNET GST search, which shows recent filings and a simple filing label.