Purchasers responsibility to verify the GST registration of the seller on the GST Portal

Last updated: 13 January 2024

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Quick Summary

The Supreme Court has upheld a ruling stating that purchasers are only responsible for ensuring they have genuinely bought goods for valuable consideration after verifying the seller's GST registration on the official GST portal. This decision came in a case where goods in transit were detained, but the court found the buyer's responsibility was limited to this verification, even if the seller later proved problematic.

Court :
Supreme Court of India

Brief :
The Hon'ble Supreme Court in the case of Deputy Assistant Commissioner-1 (ST) v. Arhaan Ferrous and Non Ferrous Solutions (P.) Ltd. [Petitions for Special Leave to Appeal (C) No (S). 24711-2474 of 2023 dated November 6, 2023] held that they are not inclined to interfere in the matter where the Hon’ble Andhra Pradesh High Court held that the assessee was responsible only to the extent of establishing that the bonafide purchased goods from the Supplier for valuable consideration after verifying the GST registration of the said Supplier on the GST portal.

Citation :
Petitions for Special Leave to Appeal (C) No (S). 24711-2474 of 2023 dated November 6, 2023

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