ITC Protection for Bona Fide Recipients: Gauhati HC Ruling on Reversal Requirement

• Gauhati High Court ruled that bona fide recipients cannot be denied Input Tax Credit (ITC)
• Section 16(2)(c) of the CGST Act requires tax in respect of which ITC is availed to be paid by the supplier
• National Plasto Moulding challenged a show cause notice seeking to reverse ITC, claiming to be a bona fide purchaser
• The court relied on a Delhi High Court judgement stating that purchasing dealer cannot be punished for the selling dealer’s actions
• The Gauhati HC set aside the show cause notice issued to National Plasto Moulding

Source: jsalaw.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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