Representation addressed to Union Finance Minister, GST Council and CBIC seeks legislative and administrative relief for bona fide GST recipients facing denial or reversal of Input Tax Credit (ITC) under Section 16(2)(c), Section 41, Rule 37 and Rule 37A of CGST framework.
The article explains how buyers can lose Input Tax Credit even after paying suppliers on time if the supplier fails to deposit GST with the Government.
Explains how Section 16(2)(c) links ITC eligibility to supplier tax payment, causing hardship for bona fide taxpayers even when invoices, payments, and goods are genuine.
The High Court observed that filing GST returns is the statutory mechanism for disclosing tax liability. Failure to file returns while issuing taxable invoices was treated as concealment amounting to suppression of facts.
The Court clarified that an NGTP or non-genuine taxpayer tag is only a risk indicator and not conclusive proof against buyers. Authorities must conduct proper enquiry, examine records, and provide transaction-wise findings before rejecting ITC claims.
This article explains how manipulating input tax credit in GSTR-3B without GSTR-2B support is treated as fraud under GST law. It highlights the risk of cancellation, tax recovery, and prosecution for taxpayers and professionals involved.
The issue concerns denial of ITC to bona fide buyers based solely on supplier tagging and analytics. The key takeaway is that mechanical reliance on NGTP tags undermines lawful adjudication and harms compliant taxpayers.
Highlights that system-based NGTP tagging cannot replace proper verification before denying ITC. Key takeaway: factual investigation is essential before treating transactions as bogus.
The issue highlights illegal confiscation of goods under Section 130 without evidence of tax evasion. The key takeaway is that penal provisions cannot be invoked without proving intent to evade tax.
The issue concerns vague GST cancellation notices lacking facts. Courts held that absence of details violates natural justice and invalidates proceedings.
