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Tuesday, December 15, 2020

GSTN portal now lets businesses nudge vendors to report invoices :-livemnt Updated: 14 Dec 2020, 10:59 PM ISTGireesh Chandra Prasad · The facility is significant as it connects both the seller and the buyer on the common tax return filing portal · The new ‘communication between taxpayers’ facility offered by GSTN offers a chance for the buyer to officially request his vendor to rectify any default

 


·         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.

·         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.

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·         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.


·         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.

·         “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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