📰 𝗖𝗮𝗹𝗰𝘂𝘁𝘁𝗮 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗧𝗮𝘅 𝗗𝗲𝗽𝗮𝗿𝘁𝗺𝗲𝗻𝘁 𝗖𝗮𝗻𝗻𝗼𝘁 𝗗𝗲𝗻𝘆 𝗜𝗧𝗖 𝗖𝗹𝗮𝗶𝗺 𝗯𝗮𝘀𝗲𝗱 𝗼𝗻 𝗦𝘂𝗽𝗽𝗹𝗶𝗲𝗿'𝘀 𝗥𝗲𝘁𝗿𝗼𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲 𝗚𝗦𝗧 𝗖𝗮𝗻𝗰𝗲𝗹𝗹𝗮𝘁𝗶𝗼𝗻

📢 The court stated, "An ITC claim cannot be denied solely due to the retrospective cancellation of a supplier’s GST registration if the taxpayer has acted in good faith, without evidence of collusion."

🔍 𝗙𝗮𝗰𝘁𝘀: • 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Gargo Traders v. State Tax, West Bengal • 𝗖𝗼𝘂𝗿𝘁: Calcutta High Court • 𝗗𝗮𝘁𝗲: 12-Jun-2023

𝗜𝘀𝘀𝘂𝗲: Gargo Traders' Input Tax Credit (ITC) claim was denied due to the retrospective GST cancellation of their supplier, Global Bitumen, who was alleged to be a fake entity. Gargo Traders argued that they were unaware of any fraud and had complied with GST regulations.

𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: Gargo Traders submitted transaction records and payment receipts to validate their ITC claim, showing they acted in good faith and had no prior knowledge of the supplier's status.

⚖ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Calcutta High Court ruled in favor of Gargo Traders, instructing the Tax Department to reconsider the ITC claim without penalizing the claimant for the supplier’s retrospective GST cancellation. The court emphasized that unless evidence of taxpayer collusion is presented, a legitimate ITC claim cannot be denied based on a supplier’s misconduct.

📜 This judgment safeguards taxpayers against ITC rejections due to suppliers' registration issues, promoting fair and just treatment in GST compliance. Team GSTpanacea 7503031378