GST ITC Blocked for Purchases from Non-Existent Dealers: Madras HC Orders 50% Debit

Tvl. Red Rose Garments Vs Assistant Commissioner (Madras High Court) The petitioner, Tvl. Red Rose Garments, filed a writ petition challenging the impugned order dated 01.07.2025 / 08.07.2025, which directed the blocking of its Electronic Credit Ledger (ECL) under the GST regime. The order was issued on the basis that the petitioner had allegedly availed Input Tax Credit (ITC) on purchases from certain non-existent suppliers, including Tvl. Sri Vishweshwara Knits, Tiruppur, which was found to be a non-existent entity during verification. Consequently, ITC availed through invoices from this and...