- The assessee paid SGST and CGST on vehicle rental services but could not claim ITC due to the supplier’s failure to file GSTR-1.
- The assessee issued legal notices and informed GST authorities about the supplier’s non-compliance.
- Section 76(2) of the CGST Act requires authorities to recover tax collected but not deposited, which they failed to do.
- The HC ruled that GST authorities must act against the supplier for not remitting tax, affecting the assessee’s ITC rights.
- The writ petition was allowed, directing GST authorities to recover the tax from the supplier and restore the assessee’s ITC.
Source: a2ztaxcorp.net
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.
