Supplier belatedly files GST Returns paying Tax under B2C instead of B2B Triggers GST Demand on Buyer:

In a case before the Madras High Court, a buyer faced a demand for GST payment due to the supplier’s delayed filing of returns, where the supplier incorrectly classified the transactions as Business-to-Consumer (B2C) instead of Business-to-Business (B2B). The tax authorities raised a demand against the buyer, citing non-compliance. The buyer challenged the order, arguing that the misclassification was entirely the supplier's fault. The court remanded the order, directing authorities to reconsider the case with a focus on whether the buyer should be held accountable for the supplier’s errors. This judgment underscores the complexities of GST compliance and highlights the issues buyers face when suppliers fail to fulfill their tax obligations accurately. It reinforces the need for accurate and timely filing by suppliers to avoid cascading effects on buyers.