GSTAT Says GST Dept Must Review Purchase Records for ITC
In short
GSTAT ruled that tax officers must check the buyer’s purchase records before rejecting input tax credit. The reported issue was a supplier whose GST registration was later cancelled.
The ruling matters because cancellation alone may not be enough to deny ITC. The reporting does not say which taxpayer was involved or how the case ends.
What the reporting says
GSTAT ruled that the GST department must examine purchase records before denying input tax credit, rather than relying only on a supplier’s later GST registration cancellation. The reported basis is Section 16 of the CGST/OGST Act, according to a publisher summary. The immediate consequence is that ITC denial cannot rest solely on retrospective cancellation, but the full facts and any underlying purchases are not stated in the available reporting.
Why it matters
GSTAT ruled that the GST department cannot deny input tax credit only because a supplier’s GST registration was cancelled later. The reported reasoning points to Section 16 of the CGST/OGST Act and says genuine purchases must still be examined. This matters for taxpayers claiming ITC and for tax officers reviewing purchase compliance, but the available reporting does not identify the parties or the case outcome.