Seamless flow of Input Tax Credit (‘ITC’) was one of the intended objective behind introduction of Goods & Services Tax (‘GST’) regime. With three and a half years down the line, many issues on availment of ITC remain unaddressed. One such issue is condition of payment of tax by supplier as mandatory condition for recipient to claim ITC. The Department is now rigorously investigating and issuing notices to taxpayers to reverse ITC to the extent their suppliers have not paid tax despite taxpayers being bona fide and having fulfilled all other conditions. In the Finance Act, 2021, the Government has brought into specific condition making it mandatory for taxpayers to claim ITC only if ITC is reflected in their GSTR-2A.

In this context, we are pleased to share short video by our Senior Associate, Mr. Sourabh on Input Tax Credit of GST when tax not paid by supplier. In this video, Sourabh has succinctly discussed:

• Overview of statutory provisions under GST law;

• Challenge to this provision before various Constitutional Courts;

• Past jurisprudence on this issue;

• Grounds of challenge to such provision; and

• Recent amendments

The video is available below:

Please feel free to share your views and comments on this video.

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