Input Tax Credit Cannot Be Denied for Supplier’s Default: Tripura HC

Imagine this situation.

You buy goods from a registered GST supplier. You pay the invoice value including GST. You file your returns properly and claim Input Tax Credit (ITC). Months later, the department tells you:

“Your supplier never paid GST to the Government. Reverse the ITC, pay tax again with interest and penalty.”

Sounds unfair?

The Tripura High Court thought so too.

In a landmark ruling, the Court has held that a bona fide purchaser cannot be punished for the supplier’s f

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