ITC Denial Upheld Due to Supplier Tax Default Under GST Law: Gujarat HC

Maruti Enterprise Through Its Authorized Partner Vs Union of India & Ors. (Gujarat High Court) The Gujarat High Court examined a batch of petitions challenging the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017, which mandates that input tax credit (ITC) can be availed only if the tax charged on a supply has been actually paid to the Government by the supplier. The petitions arose from denial of ITC to purchasing dealers due to default by suppliers in depositing tax. The petitioners contended that Section 16(2)(c) is arbitrary, discriminatory, a...