Buyers Can’t Claim GST Credit If Suppliers Fail To Pay Tax To Govt - Patna High Court in the case of M/s. Aastha Enterprises Vs. State of Bihar [CWJ 10395 of 2023 dated 18th August 2023]

] Hon’ble Patna High Court held that Input Tax Credit (ITC) is a benefit or concession granted to the assessee under the statutory scheme, rather than a right conferred upon them.

The court relied on judgments from the Madras High Court and the Supreme Court, which held that the purchasing dealer must prove the genuineness of transactions and that mere production of tax invoices is not sufficient to claim ITC.

The court also held that if the supplier fails to comply with statutory requirements, the petitioner cannot claim ITC and must seek recovery from the seller.