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Businesses
can now ask their vendors to upload invoices of their transactions through a
communication facility offered by GST Network, the company that processes tax
returns.
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The
facility is significant as it connects both the seller and the buyer on the
common tax return filing portal where any default by the seller to upload the
invoice can be flagged by the buyer.
·
·
Sellers’
default in paying to the government the indirect tax collected from the buyer
has for long been a sore point in the tax credit chain and a source of
litigation.
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This
has often led to a situation where the buyer who has paid the tax to the seller
does not get credit for the taxes paid on the raw material purchased because
the government has not received it from the seller. The new ‘communication
between taxpayers’ facility offered by GSTN offers a chance for the buyer to
officially request his vendor to rectify any default in uploading the invoice
he needs for availing of the input tax credit, said a government official.
·
Also,
the seller can reply to his client through the same facility. Whenever
communication is sent by a taxpayer to his counterpart, GSTN would also
intimate the person through email and text message.
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“This
facility is expected to help taxpayers in the reconciliation of invoices. A
buyer whose supplier has not uploaded his invoice can use this communication
channel to convey his desire to the supplier that the invoices be uploaded as
he is interested in the remaining complaint and expects his suppliers to report
all invoices on which he is availing input tax credit," the person said.
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