The Supreme Court has dismissed a petition filed by authorities regarding the denial of input tax credit (ITC) under the goods and services tax (GST) regime. The court ruled that ITC cannot be denied to a buyer solely based on the seller’s non-payment of tax without proper investigation. While experts are divided on the precedent set by the verdict, the court decided not to intervene due to the small disputed tax amount. The case pertained to the reversal of ITC claimed by Suncraft Energy Ltd. The court held that the authorities must investigate the defaulting party and cannot deny credit to the recipient of supply without proper grounds.
Source a2ztaxcorp
Latest Posts in "India"
- Consumer Goods Companies Cut Prices as GST 2.0 Launches Monday
- GST Rate Changes Effective September 22, 2025: Key FAQs and Updates
- GST Rate Cut to 5% for Budget Hotels Under ₹7,500 Restricts Input Tax Credit
- Bombay HC Rules Freight Charges Reimbursed by Wholesalers Not Part of Sale Price
- GST Council announces major rate restructuring and exemptions
