Responsibility of purchaser limited to verify GST registration of seller on GST Portal

Last updated: 17 August 2023

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The Andhra Pradesh High Court has clarified that a purchaser's responsibility is limited to verifying the seller's GST registration on the GST portal and proving a bona fide purchase for valuable consideration. The court ruled that goods detained in transit, even if the supplier's business premises are questionable, cannot be confiscated from the purchaser solely on that basis. Proceedings can be initiated against the supplier, but the purchaser must be given an opportunity to establish their case.

Court :
Andhra Pradesh High Court

Brief :
The Hon'ble Andhra Pradesh High Court in M/s Arhaan Ferrous and Non-Ferrous Solutions Pvt. Ltd. v. Deputy Assistant Commissioner [Writ Petition No.15481 of 2023 dated August 03, 2023] held that, the assessee is responsible only to the extent of establishing that he bonafidely purchased goods from the supplier for valuable consideration after verifying the GST registration of the said supplier on the GST portal.

Citation :
Writ Petition No.15481 of 2023 dated August 03, 2023

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1999

(Excl. of GST ₹359)

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3499

(Excl. of GST ₹629)

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4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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