Allahabad HC Provides Relief to Trendships in GST Matter Against Commercial Taxes Dept

Affluence Advisory | Last updated: 13 June 2025

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The Allahabad High Court has ruled on a Goods and Services Tax (GST) matter concerning Input Tax Credit (ITC) for trendships. The court examined whether ITC could be claimed for purchases from a supplier whose registration was later cancelled, even if the supplier hadn't deposited the tax. The High Court considered the provisions of Section 16(2)(c) of the CGST Act prior to its amendment, alongside Sections 41 and 43A, ultimately finding that ITC cannot be availed if the supplier has not paid the tax to the government.

The petitioner had purchased goods from one of the suppliers who was a registered dealer at the time of purchase. The said goods were transported by own car of the petitioner. The payment towards said supply was made through RTGS and proof of the same was presented to support the availment of ITC.

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