How to verify if my supplier has paid GST to the government

Ensuring that your supplier has remitted the Goods and Services Tax (GST) to the government is crucial for maintaining compliance and safeguarding your Input Tax Credit (ITC). This comprehensive guide outlines the steps to verify your supplier's GST payment status, helping you avoid potential financial and legal pitfalls.

Understanding GST Compliance

Importance of Supplier GST Payment Verification

Verifying that your supplier has paid GST is essential because your eligibility to claim ITC depends on the supplier's compliance. If the supplier fails to remit the tax, you may be held liable, leading to financial losses and compliance issues.

Steps to Verify Supplier's GST Payment

1. Verify the Supplier's GSTIN

Begin by confirming the authenticity of your supplier's Goods and Services Tax Identification Number (GSTIN). A valid GSTIN ensures that the supplier is registered and authorized to collect GST.

How to Verify GSTIN:

• Online Verification: Use the GST portal's 'Search Taxpayer' feature to verify the GSTIN. Enter the supplier's GSTIN to view their registration details.

• Third-Party Tools: Platforms like ClearTax offer GSTIN verification tools that provide additional details such as the legal name of the business, principal place of business, and taxpayer type.

2. Check GSTR-2A and GSTR-2B Forms

The GSTR-2A and GSTR-2B forms are auto-populated documents that reflect the details of inward supplies made to you. These forms are generated based on the supplier's GSTR-1 filings and indicate whether the supplier has reported the invoices and remitted the corresponding GST.

Accessing GSTR-2A and GSTR-2B:

• GSTR-2A: This is a dynamic form that updates in real-time as suppliers file their GSTR-1. Regularly monitoring GSTR-2A helps you track the reporting status of your supplier's invoices.

• GSTR-2B: This is a static monthly statement available on the 14th of the subsequent month. It provides a consolidated view of ITC available for a particular period, aiding in accurate ITC claims.

Steps to Access:

1. Log in to the GST portal.

2. Navigate to 'Returns Dashboard' and select the relevant financial period.

3. Choose 'GSTR-2A' or 'GSTR-2B' to view the details.

If the supplier's invoice appears in these forms, it indicates that they have filed their returns, and the GST is likely remitted.

3. Cross-Check the Invoice Details

Ensure that the invoices issued by your supplier contain accurate and complete information. Key elements to verify include:

• Invoice Number and Date: Should be unique and sequential.

• GSTIN of Supplier and Recipient: Must be valid and correctly mentioned.

• HSN/SAC Codes: Appropriate codes for goods or services supplied.

• Taxable Value and GST Amount: Should be accurately calculated as per applicable rates.

Cross-referencing these details with your records ensures consistency and compliance.

4. Track Payment Status on GST Portal

You can track the status of GST payments using the GST portal's 'Track Payment Status' feature. This allows you to verify if the tax payments corresponding to your supplier's invoices have been successfully processed.

Steps to Track Payment Status:

1. Visit the GST portal.

2. Navigate to 'Services' > 'Payments' > 'Track Payment Status'.

3. Enter the relevant details such as GSTIN and CPIN (Common Portal Identification Number).

4. View the payment status to confirm if the GST has been paid.

This step provides additional assurance of your supplier's compliance.

Addressing Non-Compliance

Steps to Take if Supplier Has Not Paid GST

If you discover that your supplier has not remitted the GST:

• Communicate: Reach out to the supplier to address the discrepancy and seek clarification.

• Report: If unresolved, report the issue to the GST authorities. You can file a complaint through the GST portal or contact the GST helpdesk.

• Adjust ITC Claims: Refrain from claiming ITC on invoices where GST payment by the supplier is uncertain, as claiming ITC without actual tax payment can lead to penalties.

Conclusion

Diligently verifying your supplier's GST payment status is vital for maintaining compliance and securing your entitlement to Input Tax Credit. By following the steps outlined above, you can mitigate risks associated with non-compliance and ensure the integrity of your tax practices.