Purchaser’s Responsibility to Verify Seller’s GST Registration on GST Portal: Supreme Court Ruling

• The Supreme Court case involved the responsibility of the purchaser to verify the GST registration of the seller on the GST Portal.
• The respondent, Arhaan Ferrous and Non-Ferrous Solutions, purchased iron scrap from M/s. K.S. Enterprises and sold it to M/s. Radha Smelters Private Limited.
• The Revenue Department detained the goods in transit, alleging that the supplier had no place of business.
• The respondent argued that the petitioner ignored the documents showing their ownership of the goods.
• The Andhra Pradesh High Court held that proceedings can be initiated against the supplier, but the goods cannot be confiscated solely based on the respondent’s purchase from the supplier.
• The petitioner can initiate proceedings against the respondent and conduct an inquiry to establish their case.
• The petitioner will release the detained goods if the respondent deposits 25% of the value of the goods and executes a bond.

Source: a2ztaxcorp.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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