Bombay High Court admits the constitutional challenge to Section 16(2)(c) of CGST i.e. default in payment of taxes by Supplier

Last updated: 09 October 2025

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Quick Summary

The Bombay High Court has accepted a constitutional challenge to Section 16(2)(c) of the CGST Act, which relates to input tax credit being denied if the supplier defaults on tax payments. The court noted conflicting judgments from other High Courts and has issued a notice to the Attorney General. While granting interim protection from GST recovery, the court requires the petitioner to deposit ₹20 lakhs.

Court :
Bombay High Court

Brief :
The Hon'ble Bombay High Court in the case of Christie's India Private Limited v. Union of India & Ors. [Writ Petition (L) No. 16964 of 2025, order dated September 20, 2025] held that the constitutional validity of Section 16(2)(c) of the CGST Act, 2017, and the corresponding Maharashtra GST provision, warrants full consideration given conflicting judgments by different High Courts. The Court issued notice to the Attorney General and granted interim protection from GST recovery, subject to a conditional deposit by the Petitioner.

Citation :
[Writ Petition (L) No. 16964 of 2025, order dated September 20, 2025

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