GST: DGGI detects entity not making timely payments where total ITC of about Rs. 260 Crores was involved:

GST: DGGI detects entity not making timely payments where total ITC of about Rs. 260 Crores was involved Officers of the Directorate General of GST Intelligence (DGGI) had detected a case of an entity not making timely payments to its suppliers while availing input credit on its inward supplies. The total credit involved was about Rs. 260 Crores. Subsequent to the detection the entire amount has now been reversed. As per Section 16 of GST Law, where a recipient fails to pay to the supplier of goods or services or both, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest. This information was provided by CBIC Chairman, Mr. Vivek Johri in his newsletter dated 20th March 2023. He congratulated the Officers for their excellent work.