Admissibility of ITC on purchase from ab-initio-cancelled dealers.

[pradip maitra]

Sir,

I want to be enlightened on the captioned issue.

Can the ITC once enjoyed as legal, be termed as

'unauthorised' for no apparent fault of the Purchaser?

[Pradip Kumar Maitra, 9433420121]

AI Summary

Admissibility of ITC Denied for Purchases from Dealers with Cancelled Registrations; No Fault of Purchaser Considered A discussion on the admissibility of Input Tax Credit (ITC) when purchases are made from dealers whose registrations were cancelled from the beginning. A participant questioned whether ITC, initially deemed legal, could later be considered unauthorized without any fault of the purchaser. The response clarified that ITC would be denied because unregistered dealers do not pay taxes, and if taxes are unpaid, the credit cannot be transferred to the purchaser.