No ITC Reversal if Supplier’s GST Registration Cancelled Later: Allahabad HC

Singhal Iron Traders Vs Additional Commissioner And Another (Allahabad High Court)

Allahabad High Court in Singhal Iron Traders v. Additional Commissioner & Another (2025) set aside tax and penalty orders issued under Section 74 of the GST Act, holding that Input Tax Credit (ITC) cannot be denied when purchases were made from a validly registered supplier who had paid tax at the time of transaction.

The petitioner, a proprietorship engaged in trading iron scrap, purchased goods worth ₹44.26 lakh (including ₹6.75 lakh GST) from M/s Shiv Iron Trading Co., Agra

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