Quick Summary
Supreme Court Dismisses GST Departments Plea, Upholding High Court Ruling on Input Tax Credit In a significant development, the Supreme Court has quashed a petition filed by authorities challenging a Calcutta High Court ruling. The High Court had determined that input tax credit (ITC) to a buyer should not be denied under the Goods and Services Tax (GST) regime solely on the grounds that the seller had not paid taxes, unless a thorough investigation had been conducted. The Supreme Courts d
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FAQ :
The Supreme Court quashed the GST department's petition, upholding a previous High Court ruling on Input Tax Credit (ITC).
The High Court ruled that ITC should not be denied solely because a seller has not paid taxes, unless a thorough investigation has been conducted.
The Supreme Court cited the relatively small amount of tax in dispute as a reason for not interfering in the matter.
The case involved a petition by the GST department against the High Court's ruling concerning Suncraft Energy Ltd. and a disputed tax amount of Rs 650,511.
It implies that GST authorities must investigate the defaulting supplier before denying ITC to the recipient of the supply.
Some experts believe the ruling's applicability may be limited due to the Supreme Court not commenting on the merits and dismissing the appeal based on the small disputed amount, potentially limiting its precedent for other businesses.
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