Quick Summary
In its recent decision in Shyamalmay Paul vs. Assistant Commissioner, SGST (December 2025), the Calcutta High Court reaffirmed that Input Tax Credit (ITC) cannot be denied to a purchasing dealer solely because the supplier's GST registration was cancelled with retrospective effect. Key Highlights
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No, the Calcutta High Court ruled that ITC cannot be denied solely because a supplier's GST registration was cancelled retrospectively, provided the buyer acted in good faith and complied with all requirements.
The petitioner submitted tax invoices, e-way bills, bank statements showing payments, party ledgers, and proof of physical movement of goods.
The court noted that at the time of the transaction, the supplier's GST registration was active and valid on the government portal.
The burden of proving fraud or collusion lies with the tax department if the taxpayer provides valid statutory documents and evidence of genuine transactions.
The ruling aligns with earlier precedents and is significant as the Supreme Court is also reviewing similar cases, potentially leading to nationwide standardization of these protections.
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