ITC Claim recovery from GST Department due to purchase from Hawala Dealers

This discussion addresses whether businesses can face GST recovery of Input Tax Credit (ITC) if their supplier is a hawala dealer whose registration has been cancelled. While the department can seek recovery if the supplier hasn't paid tax, the recipient may not have to pay if they genuinely received goods or services. The key factor is proving the actual receipt of supplies, even if the supplier is later found to be involved in illicit activities.