Right to avail ITC is conditional right: Kerala HC

Tirupati Balaji Traders Vs Union of India (Kerala High Court) Summary: In Tirupati Balaji Traders v. Union of India (July 24, 2024), the Kerala High Court upheld that the right to claim Input Tax Credit (ITC) under Section 16 of the CGST Act is conditional. Tirupati Balaji Traders contended that if ITC is denied to a purchasing dealer who has already paid the full tax to the supplier, it would undermine provisions under the CGST Act and the Insolvency and Bankruptcy Code (IBC). They argued that ITC should be claimable even if the supplier defaults on tax payment. However, the Court, referring ...