File GST Complaint Against Supplier on GST Portal

GST compliance is a two-way street. While most GST content focuses on what a registered taxpayer must do to file their own returns correctly, there are situations where a buyer is adversely affected by a supplier's non-compliance. When a supplier collects GST from you but doesn't deposit it, or refuses to issue a proper tax invoice, you lose your legitimate Input Tax Credit — money that is rightfully owed to your business.

The GST framework provides formal mechanisms to report such vendor non-compliance. This guide explains the types of complaints you can file, the correct channels, and what happens after a complaint is submitted.

Common Situations Where a GST Complaint Is Warranted

• Supplier collected GST but did not deposit it: The tax amount shows in your invoice but does not appear in GSTR-2B, meaning the supplier has not filed their GSTR-1 or GSTR-3B and has essentially pocketed your tax payment.
• Supplier refused to issue a GST invoice: A registered dealer is legally required to issue a tax invoice for every taxable supply. Refusing to do so is a violation of Section 31 of the CGST Act.
• Supplier is unregistered but is collecting GST: An unregistered entity collecting GST from customers is committing a punishable offence under Section 122(1)(i) of the CGST Act.
• Supplier is using a cancelled GSTIN: Issuing invoices on an inactive or cancelled GSTIN is fraud, and any ITC you claim on such invoices will be disallowed.
• E-way bill violations: Transporting goods without a valid e-way bill, or mismatched e-way bill details, can be reported to the department's enforcement wing.

Channels for Filing a GST Complaint

There are two primary channels for reporting supplier GST non-compliance:

1. GST Portal Grievance System

The official GST self-service portal has a built-in grievance module. Both registered taxpayers and unregistered individuals can access it:

1. Visit www.gst.gov.in.
2. Click on Services in the top menu bar.
3. Select Grievance → Lodge Grievance.
4. Choose whether you are a registered taxpayer (log in with credentials) or an unregistered person (provide your PAN and mobile number).
5. Select the grievance category — typically "Tax Evasion / Fraud" or "Invoice-related".
6. Fill in the supplier's GSTIN, business name, nature of the complaint, and supporting evidence (attach scanned invoices, payment proofs).
7. Submit and note the reference number for tracking.

2. Anti-Evasion Wing (Direct Complaint)

For serious cases involving large-scale fraud or tax evasion, you can contact the Anti-Evasion or Anti-Profiteering branch of the relevant Central GST Commissionerate (CGST) or State GST authority directly. These complaints are handled at the divisional level. You can find the contact details of your local CGST commissionerate on the CBIC website.

What Evidence Should You Gather?

A well-documented complaint is far more likely to receive prompt action. Before filing, gather the following:

• Purchase invoice copies from the supplier showing GSTIN and GST amounts charged.
• Bank payment proof (bank statement or NEFT/UPI transaction receipt) showing you paid the full amount including GST.
• GSTR-2B download for the relevant period, showing the supplier's invoices are absent (i.e., they did not file GSTR-1).
• Supplier's GSTIN search result from the GST portal showing their filing history or inactive status.

What Happens After the Complaint Is Filed?

Upon receiving a grievance, the GST portal routes it to the appropriate jurisdictional officer. The officer can take the following actions:

• Issue a notice to the supplier to file pending returns and deposit outstanding tax.
• Initiate a GST audit or inspection of the supplier's premises under Section 67.
• Arrest proceedings in cases of deliberate large-scale tax fraud (under Section 69).
• Reject the complaint if there is insufficient evidence or jurisdiction issues.

You can track the status of your grievance on the GST portal using the reference number issued at the time of filing.

Your ITC Position While a Complaint Is Pending

Filing a complaint does not immediately restore your ITC. Under the current GST framework, ITC is restricted if it does not appear in your GSTR-2B (i.e., the supplier has not filed their GSTR-1). The Supreme Court's judgment in Union of India v. Filco Trade Centre Pvt. Ltd. and subsequent GSTN circulars have made the GSTR-2B-linked ITC restriction stricter.

If the supplier eventually files the pending GSTR-1 after your complaint, the invoices will appear in your next GSTR-2B, restoring your ITC claim. However, if the supplier remains non-compliant, you may need to pursue a refund claim or write off the lost ITC as an expense.

Preventing Vendor-Side ITC Losses with Purchase Automation

The best strategy against vendor non-compliance is early detection — identifying within days of the invoice date whether the supplier has filed their GSTR-1 or not, rather than discovering the issue at the month-end GSTR-2B reconciliation.

TrulyInvoice helps by importing all vendor purchase invoices into your Tally Prime books instantly via OCR, ensuring your accounts payable records are up to date. When you run a GSTR-2B reconciliation at month-end, the matched invoices show exactly which vendor has filed and which hasn't — enabling you to follow up with non-compliant suppliers or file a portal complaint promptly. TrulyInvoice works on all major invoice formats for just plans starting at ₹399/month, giving your accounts team full visibility into every purchase transaction.