Default of tax by seller

[KRISHNAKUMAR GOEL]

What is new supreme court order on tax liabilities of a buyer if a seller fails to deposit the tax with appropriate VAT/GST authority.

[YAGAY and SUN]

It says that a Buyer cannot avail Input Tax Credit, if the Tax Collected by Seller, is not deposited with the exchequer.

[Ganeshan Kalyani]

Vat credit was eligible subject to payment of tax by the supplier.

AI Summary

Input tax credit denial: buyer cannot claim credit when seller fails to remit collected tax to the exchequer. Input tax credit is not available to a buyer where the seller has collected tax but failed to deposit it with the exchequer; VAT credit eligibility is contingent on payment of tax by the supplier and non-payment by the supplier disqualifies the purchaser from claiming credit.