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.

AI Summary

Buyers Can't Claim Input Tax Credit If Sellers Fail to Deposit VAT/GST, Clarified in Recent Discussion Forum A discussion forum addressed the issue of tax liabilities for buyers when sellers fail to deposit collected VAT/GST. A participant inquired about a Supreme Court order regarding this matter. One response clarified that buyers cannot claim Input Tax Credit if the seller does not deposit the tax with the authorities. Another response mentioned that VAT credit eligibility is contingent upon the supplier's payment of the tax.